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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S.KULKARNI, AARTI SATHE
Sheesha Sky Lounge Hospitality And Services Pvt. Ltd. – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. scn challenged for bypassing mandatory pre-consultation. (Para 1 , 2 , 3 , 4 , 5) |
| 2. petitioner claims violation of sec 37c and cbec circulars. (Para 6 , 7 , 8) |
| 3. revenue argues summons substitutes pre-consultation requirement. (Para 9 , 10) |
| 4. secs 37b-c mandate binding cbec pre-scn consultation. (Para 11 , 12 , 13 , 14) |
| 5. scn quashed; fresh pre-consultation process directed. (Para 15 , 16) |
JUDGMENT :
G.S. Kulkarni, J.
1. Rule. Rule made returnable forthwith. With the consent of the parties, taken up for final hearing.
2. A short question which raises for consideration in this petition under Article 226 of the Constitution of India is “as to whether the impugned show cause notice dated 30 December 2020 could have been issued by respondent no.2, bypassing the mandatory requirements prescribed under Sections 37B and 37C of the Central Excise Act, 1944, read with Circular No. 1053/2/2017-CX dated 10 March 2017 issued by the Government of India, Ministry of Finance (Department of Revenue), Central Board of Excise & Customs, New Delhi, (CBEC) and subsequent Circular No.1076/02/2020-Cx dated 19 November 2020 stipulating issuance of a notice in regard to a pre-show cause con
Show cause notices for service tax demands over Rs.50 lakhs require mandatory pre-consultation per binding CBEC circulars under Sections 37B-37C; summons or inquiries insufficient substitute.
Court in exercising its powers under Article 226 has to mould the remedy to suit the facts of a case. If in a particular case a Court takes the view that the Income-tax Officer while passing an order....
Service Tax demands must be substantiated by independent verification, not merely based on CBDT data, especially when claiming exemptions.
The judgment emphasized the mandatory nature of circulars issued by statutory authorities, their binding nature on tax administrators, and the importance of voluntary compliance and reducing disputes....
The court established that pre-show cause notice consultation is mandatory for demands exceeding Rs.50 lakhs, and failure to comply renders the notice invalid.
Mandatory consultation prior to issuing a show cause notice is required under the Master Circular, and failure to comply renders the notice invalid.
Point of Law : Power so exercised by the authority is a statutory power conferred upon the respondent authorities under Section 73 of the Finance Act of 1994 and as such the issuance of the said show....
The court established that the pre-consultative process under the Central Excise Act is mandatory before issuing show cause notices to ensure compliance and procedural fairness.
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