HC Remanded Matter as Assessee Claimed Non-Receipt of SCN Despite Multiple Requests

Case Details: Essence Communication (P.) Ltd. v. Commissioner of Central Goods and Service Tax, Audit-II [2024] 164 taxmann.com 681 (Delhi)

Judiciary and Counsel Details

• Vibhu Bakhru & Sachin Datta, JJ.
• Pradeep Jain, Sambhav Jain, Tarun Chawla & Pranav Raj Singh, Advs. for the Petitioner.
• Rajesh Mishra, Harishh Singhal, B. Prakash, Nishannt Kunal & R. Vishwakarma, Advs. for the Respondent.

Facts of the Case

The petitioner was a company engaged in the business of radio broadcasting, digital media, and entertainment. The department issued a show-cause notice (SCN) proposing to demand service tax and imposed penalties. The petitioner submitted a response denying the allegations and contending that it had not received the SCN. However, the department passed an order-in-original (OIO) confirming the demand and penalties.

It filed a writ petition before the High Court and contended that the OIO was passed in violation of the principles of natural justice since it had not received the SCN. The department submitted that the SCN was sent to the petitioner’s address by speed post and the petitioner had requested the department to provide a copy of the SCN on three occasions.

High Court Held

The Honorable High Court noted that the petitioner had submitted evidence of its email communications with the department requesting a copy of the SCN, and the department had not provided a copy of the SCN. The Court held that the department should have provided a copy of the SCN when the petitioner repeatedly claimed non-receipt and requested a copy. Therefore, it was held that the impugned OIO was liable to be set aside and the matter was remanded for fresh adjudication after providing a copy of the SCN.