TaxTMI 
TaxTMI 
TaxTMI 
Flaws in a Show Cause Notice.
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....laws in a Show Cause Notice.<br>By: - K Balasubramanian<br>Goods and Services Tax - GST<br>Dated:- 30-8-2025<br>The intention of this article is to bring awareness amongst all tax officials who are vested with the responsibility of issuing show cause notices to issue such SCN without any flaw. The issue was recently analysed by the Allahabad High Court on 22/08/2025 reported in Reynard Corporate ....
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....Solutions Private Limited Versus State of Up And 2 Others - 2025 (8) TMI 1463 - ALLAHABAD HIGH COURT. The story of the case is that a show cause notice was issued on 23/11/2024 under section 73. Ex party order was passed on 15/02/2025 for the period from April 2020 to March 2021 under section 73 confirming the demand as per SCN. The Bank account was also blocked on 23/06/2025. Left wit....
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....h no options, the petitioner was forced to approach the jurisdictional high court to continue the business. The High Court noticed that there were several flaws in the SCN itself and also the principles of natural justice was not followed. While these issues were brought to the notice of the counsel for respondent, it was submitted that suitable actions are already taken to avoid similar occurren....
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....ces in future as the Commissioner has issued suitable instructions to all additional commissioners. Para 10 of the order referred for this case, Mahaveer Trading Company Versus Deputy Commissioner State Tax And Another - 2024 (3) TMI 334 - ALLAHABAD HIGH COURT reads as below. 10. On query made, the learned Additional Chief Standing Counsel fairly submits, in light of similar occurrenc....
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....es, noticed in other litigation, he had apprised the Commissioner, Commercial Tax. In turn, the Commissioner, Commercial Tax, Uttar Pradesh, has issued Office Memo No. 1406 dated 12.11.2024. The same has been addressed to all Additional Commissioner to be communicated to all field formations for necessary compliance. A copy of the same has been made available to this Court. It reads as below....
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....: "1. The column in which date of personal hearing has to be mentioned, only N.A. is mentioned without mentioning any date. 2. The column in which time of personal hearing has to be mentioned, only N.A. is mentioned without mentioning time of hearing. 3. In some cases, the date of personal hearing is prior to which reply to the Show Cause Notice has to be submitted this is non-est and this prac....
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....tice has to be discontinued. The date of reply to the Show Cause Notice has to be definitely prior to the date of personal hearing. 4. In some cases, the date of personal hearing is on the same date to which reply to the Show Cause Notice has to be submitted-this is non-est and this practice has to be discontinued. The date of reply to the Show Cause Notice has to be definitely prior to the date ....
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....of personal hearing. 5. In all cases observed, the date of passing order either u/s 73(9)/ 74(9) etc. of the Act is not commensurate to the date of personal hearing. It is trite law that the date of the order has to be passed on the date of personal hearing. For eg.,the date of furnishing reply to SCN is 15.11.2023 and date of personal hearing is 17.11.2023, then the date of order has to be 17.11....
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.....2023" The high court has accordingly set aside and quashed the order and granted liberty to issue a fresh show cause notice in accordance with law. It may be concluded that filed formation, all over India irrespective of State or Central may follow the above principles while issuing the SCN to improve the quality of the SCN. Tax Professionals may bring in any flaw in the SCN to the notice of th....
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....e Quasi Judicial Authorities or Tribunal / High Court so as to enable the taxpayer to get required relief.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....