Court Rules Demand Invalid Without Show Cause Notice for Clearing Agents u/s 28.

Validity of demand against the clearing and forwarding agent in the absence of Service of SCN - In the present case, admittedly no notice has been issued to the clearing agent under Section 28. The argument of the respondents that mere imposition of liability does not require prior notice on the clearing agent is rejected straightaway for the reason that such mulcting of duty is itself bound by the requirement of proper procedure for assessment, as set out under Section 28 of the Act. It simply cannot be countenanced that a demand could be thrust on an entity without following due process prior thereto. - HC .....

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