TMI Blog2024 (2) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... les of fairness, accountability, procedural regularity, and legal certainty essential for the legitimacy and effectiveness of governance systems. Any attempt to transcend these limits not only violates the rights of the individuals or entities involved but also undermines the rule of law and public trust in the institutions tasked with upholding it. Thus, this Court holds that, adhering to the show cause notice is not merely a procedural formality, but a mandatory requirement, beyond the scope of which, no action can be taken. Adherence to the show cause notice is a fundamental safeguard against arbitrary exercises of power, ensuring that authority remains tethered to the principles of justice and the rule of law. In RAMLALA VERSUS STATE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent No. 2/Additional Commissioner Grade- II (Appeal), Commercial/State Tax, Gautam Budh Nagar and the penalty order dated July 24, 2018, passed by the Respondent No. 3/Assistant Commissioner, State Tax/Commercial Tax, Gautam Budh Nagar. 3. Upon examination of the order dated August 20, 2019, passed in appeal, it appears that the plea that had been taken in the show cause notice at the time of detention, that is, that the vehicle was travelling to a destination not mentioned in the invoice, was accepted in appeal by the authorities. However, the appellate authority has imposed penalty on a different ground, that is, that the e-Way Bill had expired though the same was accompanied with goods. 4. It is pertinent to mention her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot in Court argue a case not made out in its show-cause notice. (See Commr. of Customs v. Toyo Engg. India Ltd. [(2006) 7 SCC 592] ) Similar view was expressed by this Court in CCE v. Ballarpur Industries Ltd. [(2007) 8 SCC 89] In para 27 of the said Report, learned Judges made it clear that if there is no invocation of the Rules concerned in the show-cause notice, it would not be open to the Commissioner to invoke the said Rules. 6. Finally, in Commissioner of Central Excise, Chandigarh -v- Shital International, reported in (2011) 1 SCC 109, the Supreme Court, stated that unless the foundation of the case is laid in show-cause notice, the Revenue cannot be permitted to build up a new case against the assessee. The relevant paragraph of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gations or discrepancies attributed to them. This notice serves as a mechanism to afford the recipient an opportunity to present their side of the story, provide clarifications, or rectify any perceived errors before any punitive action is taken. By issuing a show cause notice, an authority acknowledges the principle of audi alteram partem, or hear the other side , ensuring fairness and due process in its proceedings. 8. The significance of adhering to the confines of a show cause notice lies in upholding the rule of law and preventing arbitrary exercises of power. Any action taken by an authority beyond the scope defined in the notice risks transgressing the boundaries of legality and procedural fairness. Such overreach not only underm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormality, but a mandatory requirement, beyond the scope of which, no action can be taken. Adherence to the show cause notice is a fundamental safeguard against arbitrary exercises of power, ensuring that authority remains tethered to the principles of justice and the rule of law. 10. In Ramlala -v- State of U.P and Ors. , reported in, 2023 SCC OnLine All 2479, this Court, while placing reliance on The Board of High School and Intermediate Education, U.P. -v- Kumari Chitra Srivastava, reported in, (1970) 1 SCC 121, held that the reason to not allow the authorities to go beyond the show cause notice is that a person must be given a chance to put up his case with regard to the said show cause notice. Relevant paragraphs are extracted below: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is burdensome in nature. Justice S.M. Sikri in his inimitable style stated as follows: Principles of natural justice are to some minds burdensome but this price - a small price indeed - has to be paid if we desire a society governed by the rule of law. 11. In Jitendra Kumar -v- State of U.P. and Anr., reported in, 2023 SCC OnLine All 2837, this Court, while dealing with a similar factual matrix, stated that as has been settled by various Supreme Court judgments, once the Revenue had taken a particular stand, the same cannot be completely changed and/or supplemented by a different reason or ground. Relevant paragraphs are dellineated below: 5. It is trite law, settled by a catena of Supreme Court judgments, that the Revenue canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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