CAG Objection and immediate Show Cause Notice

The principle of natural justice will have to adhered before proceeding to litigation which commences from the issue of SCN. In the case of Dharmpal Satyapal Ltd cases the Apex court inked the following:
"We are not concerned with these aspects in the present case as the issue relates to giving of notice before taking action. While emphasizing that the principles of natural justice cannot be applied in straight-jacket formula, the aforesaid instances are given. We have highlighted the jurisprudential basis of adhering to the principles of natural justice which are grounded on the doctrine of procedural fairness, accuracy of outcome leading to general social goals, etc. Nevertheless, there may be situations wherein for some reason - perhaps because the evidence against the individual is thought to be utterly compelling - it is felt that a fair hearing ‘would make no difference’ - meaning that a hearing would not change the ultimate conclusion reached by the decision-maker - then no legal duty to supply a hearing arises"

It is duty bound the authorities should issue audit enquiry, bring the audit objections to the assesse, issue audit note, give at least 7 days time to the assesse to response then only a SCN can be issued. There is a Board Circular also to this effect. The department is only interested in building up litigation and at least make a temporary recovery of 7.5% or 10% to revenue by way of pre-deposit.
R Vaidyanathan Consultant - Indirect Taxation

Ramadoss Vaidyanathan 07/04/2016