Important Points related to Show Cause Notices.
Please bookmark the tweet and appeal to follow me.
1) SCN is MANDATORY requirement for raising any Demand of Tax.
2) The SCN is the FOUNDATION of Litigation. Supreme Court in Brindavan Beverages
3) The basic aim of SCN is to provide a REASONABLE opportunity to the Noticee to present their case (basically their side of story).
4) Only a "Proper Officer" can issue you Notice. "Proper Officer" varies as per underlying proceedings (section to section).
5) Reasonable Time to Reply is must. SCN issued with lesser time or unreasonably less time (say only one day time to reply) are not valid notice.
6) Notice should specify the charges. Basically it should be speaking one with all details. Otherwise it is cryptic and vague.
7) Mere Letters or Emails are not valid Notice.
8) SCN should have these two things clearly mentioned:
i) Last Date to Reply the Notice
ii) Date, Time and Place for Personal Hearing
9) A Proper Notice has to specify the Demand i.e. Quantify the Demand.
10) SCN should clearly state that if there is a case of Non-Reply or Reply is not sufficient then what ACTION Officer will take against you. Proposed Action has to be communicated properly.
ARR
9810638155
Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification