Show Cause Notices Invalidated Due to Missing Mandatory Pre-Notice Consultation Under Master Circular 2017

HC quashed multiple show cause notices (SCNs) due to lack of mandatory pre-SCN consultation as required under Master Circular dated March 10, 2017. The court found the SCNs vague and lacking reference to petitioners' contentions raised during pre-consultation. In one case (SCA 5685/2022), though the SCN contained liability elements, it merely highlighted discrepancies between Form 26AS and ST-3 returns. The subsequent Order-in-Original was also set aside. Department retains liberty to initiate fresh proceedings or revive original SCNs subject to Supreme Court's pending decision. The ruling emphasizes that absence of pre-SCN consultation is fatal to notice validity, following precedent set in L&T Hydrocarbon Engineering Ltd. case. .....

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