show cause notice

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SHALINI JAIN (Querist)
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07 November 2008 One of my client has been issued a Show Cause Notice from the Service Tax Department. The Assessee has replied to the same. After one year again the Assessee received a Show cause Notice from the department covering the period which was in the earlier Show Cause Notice. Can the department issue two Show cause Notices for the same period when the assessee has already replied to the earlier one. No mention in the second Show cause Notice is there regarding the Earlier one.
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Thanks.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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07 November 2008 It is a show cause notice, if duplicated, you can point out that it has been replied and send a copy of reply.

SHALINI JAIN

SHALINI JAIN (Querist)
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07 November 2008 Thanks Sir for your Reply, but the Show Cause Notice is not Duplicated, Actually the Second Notice is for a much wider period which covers the period of the earlier Show Cause Notice for which we have given the reply.
Please let me know whether the Service tax Department can Issue a second Show cause notice if this is the case.

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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08 November 2008 You may reply to the dept questioning its jurisdiction to invoke longer period.

If you have made complete disclosure in your earlier reply, court may held that there is no supression of fact. Your activity is within department's knowledge. Hence the 2nd notice will berred by limition in so far as it covers period beyond one year period.

How ever the question being judicial in nature, it is preferable to keep the question open.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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08 November 2008 It may not be barred inview of the notice having been issued earlier unless it is time-barred on account of inaction on the basis of the first notice. The real position has to be seen with reference to the actual dates.