any way out if the period of show cause notice expires but y

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Ruchi Jain

Practice

27 Points Posted on 29 May 2008

In a case, the client did not reply to a show cause notice issued by the service tax department for payment of service tax dated 1/1/2008, received by him on 1/4/2008 till date. The notice requires him to pay tax which otherwise is not payable by him, because of period of limitation of 1 year(which can be proved that there was no malahide intention) and vide finance ministry circular exempting builders selling flats. show cause notice gave time to of 30 days to repky barring which case will be settled without fruther notice. niw since 30 days from the date of receipt has passed, is there any way out for him?

Replies (2)

Sanjay Dwivedi

Advocate & Consultant

136 Points Posted on 29 May 2008

Dear Friend,

There is no time limit prescribed under law, for replying to a notice. Therefore, submit a reply now. Department cannot refuse to consider it.

Before the notice is adjudicated, the adjudicating authority has to call your client for personal hearing. You can make written as well as oral submissions at the time of hearing. In fact, if you wish to make even further submission (i.e. after hearing), you can request the authority for further time.

If a case is decided against you without giving chance of personal hearing, it is violative of principles of natural justice. In such cases, the appellate authorities usually remand the matter back to the original authority.

Thanks,

Sanjay Dwivedi

Advocate

SIDDHARTHA SANKAR ROY

Government Servant -MOF

843 Points Posted on 01 June 2008

As it is mandatory for the officer issuing the SCN to seek reply from the assessees within 30 days. The assessee can always ask for extension of time to submit his or her reply. So you may submit your request for extension of time for submission of your client's reply in writting to the adjudicating authority.