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 under Section 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

Notice specificity: omission of statutory sections may be cured if adjudicating order specifies the applicable provisions and penalties.
Where an adjudicating order explicitly identifies the provisions sustaining a demand and those authorising penalties, that identification can cure a defect in a show cause notice lacking citation of specific statutory sections; nonetheless, a proper notice should specify the basis for invoking limitation rules, the proposal to levy penalties, and the service category alleged to attract tax, since ambiguity on these points may be challenged for want of particularity.