TaxTMI 
TaxTMI 
Whether Protective demand is to be issued in case of filing appeals in refund matters
Protective demand in case of filing appeals in refund matters
02 Aug 2015 
1 Reply 
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Protective show cause notices remain permissible unless stayed by extraordinary writ; appellate bodies can only stay pre-deposit obligations.
Protective show cause notices may be issued by the department in refund appeals unless the underlying order is stayed by courts via extraordinary writ; an injunction against issuance prevents protective demands. Commissioner (Appeals) and the appellate tribunal can stay only pre-deposit obligations of duty and penalty when moved, and cannot stay the issue of show cause notices. A legislative amendment mandates compulsory pre-deposits on filing appeals, with specified pre-deposit percentages at successive appellate stages. (AI Summary)
Protective show cause notices may be issued by the department in refund appeals unless the underlying order is stayed by courts via extraordinary writ; an injunction against issuance prevents protective demands. Commissioner (Appeals) and the appellate tribunal can stay only pre-deposit obligations of duty and penalty when moved, and cannot stay the issue of show cause notices. A legislative amendment mandates compulsory pre-deposits on filing appeals, with specified pre-deposit percentages at successive appellate stages. (AI Summary)