Year-wise scrutiny of consolidated tax notices, credit for payments already made, and a personal hearing before adjudication.

A consolidated show cause notice under Section 74 covering multiple assessment years should be examined year-wise where the facts so require, and the assessee's objection that the provision was not justified for later years must be considered separately. Taxes already paid must be given due credit while finalising the proceedings, and a personal hearing must be afforded before any adjudication order is passed. The competent authority retained the task of deciding the merits of the notice, but only after separate consideration of each year and observance of the hearing and credit requirements.

---

---

Issues: Whether a consolidated show cause notice invoking Section 74 for multiple years could be dealt with without year-wise consideration, and whether the assessee was entitled to separate consideration of each year, credit for taxes already paid, and a personal hearing before adjudication.

Analysis: The dispute arose from a consolidated notice covering different assessment years. The Court directed the competent authority to examine the matter separately for each year if warranted, and to consider the assessee's contention that Section 74 was not justified for the later years. It also directed that taxes already paid be given due credit while finalising the proceedings and that the assessee be afforded an opportunity of personal hearing before orders are passed.

Outcome: The petitioner obtained directions for year-wise consideration, credit of payments already made, and a personal hearing, while the adjudication on the merits of the notice was left to the competent authority.

---