Precautions - reply to show cause notice

[govindaraju velugula]

What precautions has to be taken while giving reply to showcause notice to the service tax department?

[Guest]

Following precautions should be taken:- 1) Plea of reasonable cause. 2) Limitation plea. 3) In case of import of services, plea under section 66A. 4) Response should counter all allegations invoked in SCNs. 5) Relevant case laws, clarifications, notifications,circulars & instructions should be reffered. 6) Penalty under Section 76 and 78 cannot be imposed simultaneously. 7) Plea of voluntary payment of service tax before issue of show cause notice. 8) Power of issuing authority and its jurisdiction.

[DEV KUMAR KOTHARI]

Your query is very general. Any SCN can be a special feature of proceedings depending on applicable law according to the period, facts of the case and scope of SCN. The reply should be to the point of scope of SCN, and all possible contentions should be raised on facts as well as on technical and legal aspects to win the case.

[Anish Jain]

Every SCN has its own facts. we should try to put stress on facts cleary because misrepresentation facts leads to unwanted results.

AI Summary

Key Tips for Responding to Service Tax Show Cause Notice: Section 66A, Penalties, and Jurisdiction Considerations In response to a query about precautions when replying to a show cause notice from the service tax department, contributors emphasized several key points. It is advised to raise pleas of reasonable cause and limitation, especially under section 66A for import services. The response should address all allegations in the notice and reference relevant case laws and notifications. It's noted that penalties under Sections 76 and 78 cannot be imposed simultaneously, and voluntary payment before the notice can be a mitigating factor. The authority's power and jurisdiction should also be considered. Each notice is unique, requiring a tailored response based on specific facts and legal aspects.