time limit for issue of SCN and disposal thereof for penalties u/s 122,123,124,125,127,129,130

[SUSHIL BANSAL]

Dear experts,

Plz guide on time limit for issue of SCN and disposal thereof for penalties u/s 122,123,124,125,127,129,130

[Amit Agrawal]

Kindly note following portion of Para 6 from Apex Court ruling in case of GOVERNMENT OF INDIA VERSUS CITEDAL FINE PHARMACEUTICALS (1989 (7) TMI 100 - SUPREME COURT):

"......................In the absence of any period of limitation it is settled that every authority is to exercise the power within a reasonable period. What would be reasonable period, would depend upon the facts of each case. Whenever a question regarding the inordinate delay in issuance of notice of demand is raised, it would be open to the assessee to contend that it is bad on the ground of delay and it will be for the relevant officer to consider the question whether in the facts and circumstances of the case notice or demand for recovery was made within reasonable period. No hard and fast rules can be laid down in this regard as the determination of the question will depend upon the facts of each case."

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

If penalties are integrally related to the demand SCN under Section 73 or 74, time limitation will be applicable mentioned therein, otherwise Not i.e. imposition of penalties are not time barred, if the offences are independent of the demand of tax on account of .non-levy/short levy.

Disclaimer : These are my personal views for education purposes and not for Court proceedings.

AI Summary

Time limit for penalty notices: penalties tied to tax demand are subject to demand limitation; independent offences may not be time barred. Issuance of show cause notices and penalty proceedings must occur within a reasonable period and may be challenged for inordinate delay; where penalties are integrally related to a tax demand, the time limits for that demand apply to the penalties, whereas penalties for offences independent of the demand are not necessarily time barred.