Back
DELHI HIGH COURT
RAJIV SHAKDHER, TALWANT SINGH
Back Office It Solutions Private Limited – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. grievance about procedural non-compliance (Para 1) |
| 2. mandatory consultation before issuance of scn (Para 2) |
| 3. nature of services provided by petitioner (Para 4) |
| 4. clarification on exceptions to mandatory consultation (Para 5) |
| 5. contestation regarding applicability of tax rules (Para 6) |
| 6. requirement to conduct pre-show cause notice consultation (Para 7) |
| 7. disposition of writ petition (Para 8) |
JUDGMENT
Rajiv Shakdher, J. (Oral)--Mr. Puneet Agrawal, who appears on behalf of the petitioner-company, says that, although several grievances and resultant reliefs have been sought, in the instant writ petition, for the moment, the grievance and consequent relief sought, is confined to the failure on the part of the contesting respondents [i.e., respondent nos. 2, 4 and 5] to scrupulously adhere to the provisions of the instruction dated 21.12.2015 bearing F. No. 1080/09DLA/MISC/15/757 [in short "2015 instruction"] and the Master Circular dated 10.03.2017 [in short "2017 Master Circular"], issued by Central Board of Excise & Customs, Department of Revenue, Ministry of Finance, Government of India [presently, known as "Central Board of Indirect Taxes & Customs"]
1.1. Accord
Mandatory consultation prior to issuing a show cause notice is required under the Master Circular, and failure to comply renders the notice invalid.
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....
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....
Service Tax demands must be substantiated by independent verification, not merely based on CBDT data, especially when claiming exemptions.
The Circular dated 11.11.2021 clarified the pre-show cause notice consultation requirement and operated retrospectively, influencing the Court's decision on the jurisdiction of the show cause notice.
Consultation as mandated in the Finance Act and Master Circular requires a two-way dialogue and cannot be satisfied solely by voluntary statements.
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.
Point of Law : Sub-rule (1A) of Rule 142 (unamended) of the 2017 Rules: The proper officer shall, before service of notice to the person chargeable with tax, interest and penalty, under subsection (1....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
