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REPLY TO SHOW CAUSE NOTICE

Service Tax - By: - Mr. M. GOVINDARAJAN - Dated:- 26-5-2016 - We have seen in the previous articles that the tax/duty cannot be recovered without issuing a show cause notice and the assessee is given a reasonable opportunity of being heard. The show cause notice itself requires submitting the reply, if any, of the assessee before the concerned officer for his consideration with relevant copies of documents to substantiate his arguments. The show cause notice itself gives the time within which th .....

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und that the record that the appellant had not replied to the show cause notice nor attended the hearings before the Adjudicating Authority and were claiming before the Commissioner (Appeals) that they were not given the relied upon documents. The Tribunal deprecated the attitude of the appellant, at the same time since the appellant should be given a chance to defend the case properly before the Adjudicating Authority. In view of this without expressing any opinion on the merits of the case, th .....

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URT admittedly what is under challenge is only a show cause notice, calling upon the petitioner to show cause as to why the service tax should not be levied against him. But the petitioner has not chosen to give any reply to the said show cause notice, instead rushed to this court with this writ petition. In the opinion of the Court when alternative remedy is available, which is efficacious the Writ Petition cannot be entertained at all. The petitioner can very well submit his explanation and if .....

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GUJARAT HIGH COURT the question involved in the petition is whether service tax is to be paid on the amount recovered by an assessee before 01.07.03 i.e., the date on which the service tax was made leviable under the provisions of Sec. 66 of the Finance Act, 1994. It is not in dispute that the amount which is to be made taxable by the respondent authorities was received by the petitioner before 01.07.2003. It appears to be the case of the respondents authorities that because of the circular date .....

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he High Court directed that the petitioner shall give reply to the demand notice dated 29.06.2005 and show cause notice dated 23.11.2005 which has been issued during the pendency of this petition and the concerned authority shall finally adjudicate the case. In Royal Ocean Agency Private Limited V. Union of India - 2009 (5) TMI 519 - CALCUTTA HIGH COURT - it was held that it is the question of fact, which cannot be gone into in the writ jurisdiction. Therefore as the show cause notice has been i .....

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been challenged and especially when the remedy of filing reply to the show cause notice before the authorities concerned has not yet been availed. It cannot be presumed that the authorities under the Act would not consider the issues before the High Court. Therefore the petitioner is relegated to the remedy of show cause notice by filing reply. In Mukesh & Associates V. Commissioner of Central Excise, Salem - 2008 (4) TMI 66 - CESTAT, CHENNAI - In adjudication of a show cause notice the Com .....

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filing as also for being heard. It was informed that the documents asked for by them were not possession of the department and these documents were not relied on the show cause notice. The appellants, the Tribunal held, do not deny this. The Tribunal further held that for whatever reason, no having been filed in the case, the party s request for a last opportunity to submit is a part of opportunity of being heard vis-à-vis the allegations raised in the show cause notice. The Tribunal did .....

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d amount a reply to the show cause notice. It was not a detailed reply and that it was filed only to avoid ex-parte proceedings against the appellants. The appellants are themselves to be blamed for the delay in the matter. It is true that there is a voluminous record, however, merely because there is voluminous record it cannot justify unreasonably long period to prepare the reply. Undoubtedly the documents are in relation to the activities of the appellants themselves. Being so, all the materi .....

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e show cause notice was received by the appellant in the middle of 2007. The order-in-original was passed on 15.10.2008. There is no valid explanation as to why any reply could not be filed by the appellant upon receipt of the show cause notice, during the long spell between the two dates. The plea of negation of natural justice raised by the appellant is also too feeble to be considered for the present purpose. In Erode Ranga Textiles Processors (P) Limited V. Commissioner of Central Excise, Sa .....

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s argument. The Department issued a show cause notice after framing a case of clandestine removal of goods against them. It is also furnished to the notice all the evidentiary materials relied upon by it. Thereupon it was open to the noticee to reply to the notice admitting or denying the allegations raised in the notice. Where there was no reply denying such allegations, there was no dispute to be adjudicated upon. A dispute arises when facts alleged by one party are denied by the other. In the .....

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Before seeking to cross examine them, the appellant must first deny the allegations through a reply to the notice. In this article the steps to be taken in giving reply to the show cause notice are discussed. If a show cause notice is served on the assessee, the same may be received by the assessee; Don t avoid receipt of show cause notice; non receipt is sometimes considered as a service and there is the possibility of deciding the case ex-parte without hearing the assessee; The date of receip .....

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f the assessee fees that the service tax is payable by him it would be advisable to pay the service tax and inform the same to the department; If any document is required from the department request may be made to the department asking for the documents; If the reply to the show cause notice is not able to be given in the prescribed time extension of time may be sought before the authority in writing; If no reply is received from the department, it may be taken as granted that the extension of t .....

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