2013 (11) TMI 1005 - HC - Service Tax

Validity of Amendment / corrigendum to the Show Cause Notice - additional notice - change in the scope of period of limitation invoked in the SCN - Held that - revenue submitted that this is acceptable to the department and the show cause notice dated 22.4.2013 will be treated as corrigendum or in continuation to earlier notice dated 17.10.2012, without disturbing or increasing the limitation period. - writ petitions disposed of. Repeated issue of demand-cum- show cause notice for the same period, leads to inconvenience and in some cases harassment of assessee as the for the same period they have to engage professionals and furnish accounts, documents etc. all over again. It also duplicates the work of the officrs. The CBEC will examine the said aspect. If required and necessary, appropriate directions or orders may be issued to ensure that repeated show cause notices are only issued when circumstances justify and are permitted under the law.

Summary

Issues:
- Acceptance of notice dated 22.4.2013 as corrigendum or additional notice.
- Concern regarding repeated issuance of show cause notices for the same period.
- Instructions for the CBEC to examine the issue and issue appropriate directions.
- Clarification that no observation was made on the merits of the case.
- Timeline for filing a reply to the show cause notice and entitlement to raise objections.

Acceptance of Notice as Corrigendum:
The judgment addresses the issue of whether the notice dated 22.4.2013 should be considered a corrigendum or an additional notice in continuation of the earlier notice dated 17.10.2012. The respondent's counsel, Mr. Rahul Kaushik, agreed that the notice dated 22.4.2013 could be treated as a corrigendum without affecting the limitation period. This agreement led to the disposal of the writ petition.

Repeated Issuance of Show Cause Notices:
The judgment highlights the concern over the repeated issuance of demand-cum-show cause notices for the same period by the respondents. This practice was noted to cause inconvenience and potential harassment to the assessee as they have to engage professionals and provide documents repeatedly. The Court directed the Central Board of Excise and Customs (CBEC) to examine this issue and issue necessary directions to ensure that repeated show cause notices are only issued when justified and permitted by law.

Instructions to CBEC and Clarification:
The Court clarified that no observations were made on the merits of the case. It instructed the petitioner to file a reply to the show cause notice dated 22.4.2013 within three weeks, allowing the petitioner to raise all contentions and objections, including those related to the second show cause notice. Additionally, the Court mentioned that any payment made should be taken into account by the respondent, and the petitioner can raise this contention before the authorities.

Conclusion:
The writ petition was disposed of based on the agreement reached regarding the notice dated 22.4.2013. The judgment emphasized the need for the CBEC to address the issue of repeated show cause notices and instructed the petitioner on the timeline for responding to the notice while preserving their right to raise objections.