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2020 (11) TMI 84 - HC - Service TaxValidity of SCN - Demand of Service Tax - Site formation and clearance excavation earth moving and demolition services - Works contract service - Maintenance and Repair service - main grounds raised by the petitioner is that the demand of service tax on the grounds relied upon in the impugned order is not in conformity with the proposals made in the show cause notice and that the notice is vague and without any details - HELD THAT - It is a settled proposition of law that a show cause notice is the foundation on which the demand is passed and therefore it should not only be specific and must give full details regarding the proposal to demand but the demand itself must be in conformity with the proposals made in the show cause notice and should not traverse beyond such proposals. The show cause notice issued to the petitioner is a proposal to demand service tax on manpower recruitment or supply agency; management maintenance or repair services; works contract; and commercial or industrial construction - Apparently the demand of service under the aforesaid heads were not specifically proposed in the show cause notice dated 13.10.2014. Furthermore the petitioner had expressed his inability to raise his objections to the show cause notice since the notice did not indicate the respective services under which the proposal for demand of service tax was made. However without adhering to his objections the impugned adjudication order has been passed. The very purpose of the show cause notice issued is to enable the recipient to raise objections if any to the proposals made and the concerned Authority are required to address such objections raised. This is the basis of the fundamental Principles of Natural Justice. In cases where the consequential demand traverses beyond the scope of the show cause notice it would be deemed that no show cause notice has been given for that particular demand for which a proposal has not been made - the impugned adjudication order cannot be sustained since it traverses beyond the scope of the show cause notice and is also vague and without any details. Petition allowed.
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