"SHOW CAUSE NOTICE: VAGUE"

"SHOW CAUSE NOTICE: VAGUE"

A vague SCN is one that lacks specific details about the alleged contraventions. It might be a mere mechanical reproduction of the provisions of the law without striking off irrelevant portions.

An SCN is considered vague if it doesn’t enable the recipient to effectively respond to the allegations due to lack of relevant information and material.

Let's delve deeper into this topic with some select judgments:

1. Delhi High Court

1.1 Krishan Mohan (11-Mar-2024)

Show Cause Notice and order cancelling assessee's registration were bereft of any details accordingly same could not be sustained and neither SCN, nor order spell out reasons for retrospective cancellation, therefore said order was to be modified to limited extent that registration should be treated as cancelled with effect from date when #SCN was issued.

1.2 Rajendra Prop. Ramp Weldsafe and Metal Industries (19-Feb-2024)

Where Assessee was not given opportunity to even object to retrospective cancellation and showcausenotice did not specify any cogent reason, and merely states "others" and notice also did not give name of officer or place or time where assessee had to appear, therefore same were to be set aside and GST registration of assessee was to be restored.

2. Bombay High Court

2.1 Jugal Kishore Jajodia (23-Sep-2021)

INCOME TAX : In show cause notice under section 269UD provisional conclusions are required to be briefly specified, so that affected persons could correct or controvert same effectively ; if a vague SCN is given without specifying anything or without specifying grounds for holding that property is required to be purchased under section 269UD, then it can be held that reasonable opportunity of showing cause has not been given.

[2022] 286 Taxman 66 (Bombay)

3. Telangana High Court

3.1 Mondelez India Foods Pvt. Ltd. (18-Nov-2023)

#ShowCauseNotice was issued mechanically without necessary information or materials and bereft of facts was not sustainable.

4. Andhra Pradesh

4.1 Kanyaka Parameswari Oils Pvt. Ltd. (02-Feb-2024)

SCN was vague since no specific provision which was violated by assessee was mentioned in said SCN, order of rejection of application for revocation of cancellation of registration passed by revenue was to be set aside and matter was remitted back.

Conclusion

✅The principles of natural justice require that an SCN must contain adequate information to enable the assessee to respond.

✅ In conclusion, a vague SCN is not legally sustainable. It’s crucial that SCNs are clear, specific, and provide all necessary details for the recipient to adequately respond. This ensures fairness and adherence to the principles of natural justice.

✅An SCN is considered vague if it doesn’t enable the recipient to effectively respond to the allegations due to lack of relevant information and material.

✅ A vague SCN is one that lacks specific details about the alleged contraventions. It might be a mere mechanical reproduction of the provisions of the law without striking off irrelevant portions.

Trust you will find these useful.

Thanks & Regards

Abhishek Raja Ram

9810638155