Nikunjam Constructions PVT.LTD. vs. Union Of INDIA
Held
The High Court held that the Master Circular mandating pre-show cause notice consultation is binding on the department. Consequently, the show cause notice issued without such consultation was set aside, with liberty granted to the respondents to initiate fresh proceedings from the consultation stage, without being barred by limitation if done within 60 days.
Facts
A construction company challenged a show cause notice proposing service tax demand for the period Oct 2016-June 2017, arguing it was issued without the mandatory pre-show cause notice consultation stipulated by Master Circular No.1053/02/2017. The department contended the circular was not statutory and thus not binding.
Key Issues
The key legal issue was whether a show cause notice issued without a mandatory pre-show cause notice consultation, as required by a departmental Master Circular, is valid and binding on the department.
Sections Cited
None
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Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS WEDNESDAY, THE 18TH DAY OF MAY 2022 / 28TH VAISAKHA, 1944 WP(C) NO. 18257 OF 2021 PETITIONER: M/S.NIKUNJAM CONSTRUCTIONS PVT.LTD. T.C. 4/2554(3), INDRAPRASTHAM, PATTOM-KOWDIAR ROAD, PATTOM P.O, THIRUVANANTHAPURAM - 695004, REPRESENTED BY ITS MANAGING DIRECTOR, MR. S. KRISHNA KUMAR. BY ADVS. JOSE JACOB JAZIL DEV FERDINANTO RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI – 110001. 2 THE SUPERINTENDENT (AUDIT) OFFICE OF THE DEPUTY COMMISSIONER OF CENTRAL TAX & CENTRAL EXCISE - AUDIT CIRCLE I THIRUVANANTHAPURAM, GST BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM – 695001. 3 THE ASSISTANT COMMISSIONER OFFICE OF THE COMMISSIONER OF CENTRAL TAX & CENTRAL EXCISE, GST BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM – 695001. 4 THE JOINT COMMISSIONER, OFFICE OF THE COMMISSIONER OF CENTRAL TAX & CENTRAL EXCISE (AUDIT), KOCHI, CENTRAL REVENUE BUILDING, I.S PRESS ROAD, KOCHI – 682018. BY ADVS. C.DINESH, CGC SRI.THOMAS MATHEW NELLIMOOTTIL, SC, CENTRAL BOARD OF EXCISE & CUSTOMS THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
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