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2019 (2) TMI 1622 - HC - Service TaxPrinciples of natural justice - Process of consultation envisaged as between the Assessee and the Service Tax Authorities to arrive at an amicable resolution of disputes raised by the Tax Department, prior to escalation of disputes to the level of issuance of show cause notice, such opportunity not provided - HELD THAT:- The Customs Department has incorporated the Consultative process as a measure of Alternative Dispute Resolution to reduce litigation wherever possible. This is to facilitate resolution of disputes raised by the Audit in the light of the responses sought and received from the Assessee thus obviating the necessity of even a show cause notice where the dispute can be resolved in an amicable fashion. Clarifications dated 08.07.2016 and 10.03.2017 make it expressly clear that these are steps towards trade facilitation and promoting voluntary compliance and also a measure to reduce the necessity of issuing show cause notices where avoidable. This is thus, a laudable initiative that has to be diligently pursued for maximum benefit to both the assessee as well as the Revenue. In the present case, the objections dated 07.05.2018 are in general terms. The petitioner points out that the document in the possession of the Department is of the year 2004, whereas the enquiry relates to the period October 2012 to June 2017. The business activities and methods of doing business are likely to have changed over the years. The obvious inference is that consultation has to be between the assessee and the officer and prior to the stage of issuance of show cause notice. In fine, I conclude that the consultative process as envisaged by the Department mandates an opportunity of personal hearing with the Assessee, face to face, in order to make the process an effective one. The petitioner, in this case, has been denied this opportunity. The respondent will call upon the petitioner to appear before him with all relevant materials and afford it full opportunity of hearing and consultation prior to issuance of show cause notice, if at all necessary - petition allowed by way of remand.
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