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CHALLENGING THE ISSUE OF SHOW CAUSE NOTICE

Service Tax - By: - Mr. M. GOVINDARAJAN - Dated:- 19-5-2016 - Once the show cause notice is received by the assessee he is supposed to respond to the show cause notice by filing reply to the show cause notice with the authority concerned within the time stipulated in the show cause notice. If reply could not be given within the due date the Authority may be requested to give further time for giving reply. The issue to be discussed in this article whether the issue of show cause notice can be cha .....

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btained in civil courts against the issue of show cause notice since civil courts have no jurisdiction on the taxation matters. Thus the only way to challenge the issue of show cause notice is by way of filing a writ petition before the High Court. The scope of the show cause notice is well explained in TRF Limited V. Commissioner of Central Excise & Service Tax, Jamshedpur - 2013 (4) TMI 21 - JHARKHAND HIGH COURT in which it was held that neither the issuing authority nor assessee should ma .....

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entious issues rather than pulling question to assessee, may something reflect pre-determined mind of issuing authority. The show cause notice should not show pre-determined mind of department. Such notice cannot be treated to be a notice to show cause in any manner. The High Court will not entertain writ petition against the issue of show cause notice in all cases. In Kirloskar Computer Services Limited V. Union of India - 1997 (6) TMI 35 - KARNATAKA HIGH COURT the interference with the proceed .....

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justice; orders impugned are without jurisdiction; private and public wrongs are inextricably mixed up; prevention of public injury and vindication of public justice demands it that recourse to Article 226 of the Constitution of India. In Creative Travel Private Limited V. Commissioner of Central Excise & Service Tax, New Delhi - 2015 (10) TMI 1305 - CESTAT NEW DELHI before the issuance of show cause notice the assessee was asked to provide details/document/information for the period from A .....

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notice before the High Court, Delhi. The High Court, Delhi directed the Adjudicating Authority to decide the matter with regard to jurisdiction tacit basis taken into consideration the stand and stances put forth by the assessee, whether the show cause notice was issued correctly or not. In Bhubaneswar Development Authority V. Commissioner of Central Excise & Service Tax - 2015 (4) TMI 464 - ORISSA HIGH COURT the challenge has been made to the demand-cum-show cause notice calling upon to su .....

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and/or acted mechanically and consequently, he submits that the impugned show cause notice amounts to wrongfully invocation of jurisdiction and hence ought to be quashed. The High Court held that the issue whether the extended period of limitation was applicable, was yet to be determined by the Adjudicating Authority at first instance itself. Hence writ petition was not maintainable. The High Court directed the petitioner to file reply to show cause notice within 30 days of the order and to par .....

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y to show cause notice is submitted by the petitioner. Admittedly the petitioner has not filed any explanation and even did not care to appear on several opportunities to explain before the Revenue authorities and without even filing of reply to the show cause notice, approaching the High Court is premature. The High Court further held that if reply to show cause notice is furnished, it is always open to the authority to consider and decide in accordance with the law. In Infinity Infotech Parks .....

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ainable. The Commissioner of Service Tax has not properly applied his mind to the issued required to be addressed for invoking the extended period of limitation. The impugned show cause notice has been issued by wrongful invocation of jurisdiction. The writ petition is allowed for the reasons discussed above. The High Court set aside the impugned show cause notice. In Mega Corporation V. Commissioner of Service Tax - 2015 (1) TMI 1095 - DELHI HIGH COURT the petitioner challenged the show cause n .....

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