Adjudication

[MANASH MUKHERJEE]

Dear Sir,

A show cause notice was issued to an assessee on the ground that they have violated the provisions of Sec.68,69,70 of FA,1994. Demand was issued on that ground. Subsequently the case adjudicated and demand confirmed underSection 73 and penalty imposed under 78 of the said act.My question is that how can a demand be confirmed on the sections which have not been mentioned in the SCN.

AI Summary

Clarity Required in Show Cause Notices: Ensure Compliance with Sections 68, 69, 70, and Demand Justification under Section 73. An individual raised a query about a show cause notice issued for violating Sections 68, 69, and 70 of the Finance Act, 1994, which led to a confirmed demand and penalty under Section 73 and 78. Respondents clarified that if the adjudicating order specifies the relevant sections, it fulfills legal notice requirements. It was noted that Sections 68, 69, and 70 pertain to compliance, while Section 73 concerns demand timelines. The show cause notice must clarify the basis for using Section 73 and specify the service category. If the notice lacks clarity, it can be contested before an appellate authority.