Delhi HC issues notice where SCN is adjudicated upon after 11 years

Last updated: 09 May 2024

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Quick Summary

The Delhi High Court has issued a notice in a case where a Show Cause Notice (SCN) was adjudicated by the Revenue Department after a significant delay of over 11 years. The petitioner argued that the department wrongly placed the burden of proof on them to show no delay, contrary to the interpretation of Section 73(4B) of the Finance Act, 1994. The court has scheduled further hearings for May 14, 2024.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court heard the case of M/s. Payworld Digital Services Private Limited [W.P. (C) 5881/2024] ("the Petitioner") on April 26, 2024 where the Show Cause Notice was adjudicated upon by the Revenue Department ("the Respondent") after a delay of 11 years and 9.5 years.

Citation :
W.P. (C) 5881/2024

The Hon'ble Delhi High Court heard the case of M/s. Payworld Digital Services Private Limited [W.P. (C) 5881/2024] ("the Petitioner") on April 26, 2024 where the Show Cause Notice was adjudicated upon by the Revenue Department ("the Respondent") after a delay of 11 years and 9.5 years.

The Petitioner contended that, the Respondent at the passing of the Impugned Order has erred in placing the burden on the Assessee to prove that there was no delay on part of the Respondent when interpreting the expression "where it is possible to do so" as per Section 73(4B) of the Finance Act, 1994, it implies that there were some circumstances due to which it was impossible for authority to adjudicate the show cause notice.

The Petitioner further contends that, despite such delay there was not even a single fact in the impugned Order which prevented the Respondent from proceeding with the adjudication of Show Cause Notice.

The Hon'ble High Court issued notice and listed the matter for further hearing on May 14, 2024.

FAQ :

The main issue is that a Show Cause Notice was adjudicated by the Revenue Department after an 11-year delay, and the petitioner argues this delay was handled incorrectly by the authorities.

The parties are M/s. Payworld Digital Services Private Limited (the Petitioner) and the Revenue Department (the Respondent).

The petitioner refers to Section 73(4B) of the Finance Act, 1994, concerning the interpretation of 'where it is possible to do so' in relation to adjudicating a Show Cause Notice.

The petitioner argued that the Revenue Department erred by placing the burden on the assessee to prove there was no delay on the part of the respondent.

The Delhi High Court has issued a notice and scheduled the matter for further hearing on May 14, 2024.

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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