Whether issuance of SCN under section 73 is mandatory to fix the liability of the assessee? Whether demand of service tax and interest is not sustainable in absence of SCN?

19 - Demand and Recovery

Yes. In the case of Diamond Cables Ltd. [2004 (3) TMI 6 - CESTAT (MUMBAI)] it was decided that the matter is already covered in the decision of Allied Instruments Pvt. Ltd. [2002 (12) TMI 1 - CEGAT, MUMBAI] in which, it was held that the notice was not issued under Section 73 of the Finance Act and it was issued only under Section 77 for imposing penalty on account of failure to file returns, the Commissioner cannot under the Revisionary powers pass an Order for making payment of Service Tax with interest. 

Dated: 3-4-2015