TaxTMI 
TaxTMI 
TaxTMI 
2021 (3) TMI 85
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....umar Sundaram and learned counsel for the respondent Department Mr. P.A.S. Pati. 2. The show-cause notice no. V(8) 30/S.Tax/Himanchal/Misc./ JSR/2014/10481 dated 21.11.2017 (Annexure-1) has been assailed in the writ petition inter-alia on a number of grounds i.e. it has been issued with a pre- determined and closed mind without appreciating the statutory provisions; it is hopelessly barred by limitation; the grounds are irrelevant and not adhering to the provisions of law and as such the contents of the show-cause notice are in complete derogation of material facts/evidence available with the respondents. However, primary thrust of the challenge is on non-compliance of the consultative exercise prior to the issuance of show-cause notice as....
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....gic, then in every case para 5.0 can be dispensed with on the ground that the adjudication of the SCN is likely to lead to the noticee facing proceedings for having committed an offence. The exception would then become the rule and not vice-versa, and the need for any pre-notice consultation being rendered redundant. On those reasoning the impugned show-cause notice was quashed by the Delhi High Court. The impugned show-cause notice does refer to notices issued to the assessee by the Preventive Branch, Central Excise and Service Tax Headquarters at para-2 based on 3rd party information but it cannot come into the category of preventive show-cause as the SCN has been issued by the office of Commissioner, GSTN & CX and not by the Preventive B....
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.... value of service rendered and service tax payable in statutory ST-3 returns amounts to misstatement and suppression of facts from the department, replied in 'yes'. Petitioner instead of exhausting his remedy through proper channel, has straight away approached this Court. The SCN has not been issued with a predetermined mind and as such all details of correspondence made with the petitioner has been duly referred to in SCN giving him opportunity to respond. Had the information relating to wilful suppression of material facts from the Department not come to light on 3rd party information received by the department and investigation initiated thereupon, petitioner would have been successful in evading payment of tax. Since such misst....
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....ving demands of duty above Rs. 50 lakhs (except for preventive/offence related SCNs) mandatory vide instruction issued for F No.1080/09/DLA/Misc./15 dated 21st of December 2015. Such consultation shall be done by the adjudicating authority with the assessee concerned. This is an important step towards trade facilitation and promoting voluntary compliance and to reduce the necessity of issuing show-cause notice." 8. This provision appears to have been incorporated to facilitate trade and promote voluntary compliance and to reduce the necessity of issuing show-cause notice in such cases where the demand of duty is above Rs. 50 lakhs. In a way the rigors of adjudication proceedings was intended to be avoided if the case of the assessee does ....
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....2015, (iii) C. No. V(8) 30/S.Tax/HIMANCHAL/Misc./JSR/2014/1928 dated 25.02.2016 summoning the assesse on 04.03.2016, (iv) C. No. V(8) 30/S.Tax/HIMANCHAL/Misc./JSR/2014/3447 dated 05.04.2016 summoning the assesse on 05.04.2016 and (v) C. No. V(8) 30/S.Tax/HIMANCHAL/Misc./JSR/2014/3922 dated 18.04.2016 summoning the assesse on 18.04.2016. 11. The SCN also indicates that had the third party information not been received by the department and investigation initiated, the case could not have come to light. As such, it appeared that it is a case of wilful suppression of material facts from the department. Para-21 of the SCN indicates that the Managing Director of the assessee and noticee no.2 was also asked to explain as to why he be n....