Two SCN for similar issue to a common taxpayer

[Sudhir Kumar]

One SCN for the period 2008-09 to 2011-12 was issued in 19.07.2013 for the amount of Rs. 79 Lacs. After passing of two years the department realized that the SCN issued on 19.07.2013 has not covered the gross value and after considering the gross value shown in P/L account again a SCN was issued for the period 2008-09 to 2013-14 covering the period 2008-09 to 2011-12 for which SCN was already issued on 19.07.2013. This time the SCN was issued for the demand of Rs. 80512024/-. Now the question is whether the department is eligible to issue two SCN on the same issue for the same period to the same noticee. Is is not barred by limitation.

[KASTURI SETHI]

What is the date of issuance of second SCN ? 

[Sadanand Bulbule]

Dear

What actually is the amount to be paid by you? Is it 79 Lakhs or Rs. 80512024? Facts are equally important.Such notices are subject to limitation and the department must be aware of it.

[KASTURI SETHI]

Now both SCNs will be adjudicated in a single (common) Order-in-Original. Once the SCN for the period from 2008-09 to 2011-12 stands issued within time limit, the demand cannot be time barred irrespective of the fact that this period has been included in the consolidated SCN covering the entire period from 2008-09 to 2013-14. 

Whether the demand for the period  12-13 & 13-14 is time barred or not can be ascertained only after knowing the date of issue of the SCN.

[Sudhir Kumar]

 the date of issuance of 2nd SCN is 30.03.2015

[KASTURI SETHI]

Both the SCNs are not time barred. The department cannot issue two SCNs on the same issue, for the same period and the same Noticee. This technical lapse cannot  help the querist. 

[Sadanand Bulbule]

Dear querist

Plz confirm what exactly is the amount payable by you to defend your case, apart from banking on mere technicalities.

[Manoj Thakur]

Limitation is overcome if suppression or misdeclaration is proven by deptt

AI Summary

Limitation defence: an earlier timely SCN preserves liability for the same period even after a later consolidated SCN is issued.
An initial SCN issued within limitation for a specified period preserves the department's demand for that period even if a later consolidated SCN re includes it; overlapping SCNs can be adjudicated together but procedural lapses do not automatically bar the demand. Limitation for subsequently included years must be determined by the later SCN's date, and the department may defeat limitation by proving suppression or misdeclaration.