Reflections on Criticality of Show-Cause Notice in Tax Laws
SCC Online Blog
Posted: 24 Jan 2024
Date Written: November 16, 2023
Abstract
Under the existing scheme of fiscal laws in India, both the initiation of dispute and the adjudication is by the Revenue Officers themselves. Both from an administrative law front (which decries that no one shall be a Judge in his own cause) and also from a constitutional perspective (which envisages separation of executive from the judiciary) this is not an ideal scenario. Nonetheless to instill a degree of fairness in the adjudication process, judicial prescriptions have constrained the extent of administrative discretion available to the officers. One such instance is where the judiciary has proscribed the powers of the Revenue and evolved the fundamental tenets which need to be observed by the Revenue Officers insofar as the manner of recovery of tax in the form of a show-cause notices concerned. This note seeks to revisit certain fundamental principles which govern the notice proceedings in tax laws.
Keywords: Show Cause Notice, Tax Law, Tax Litigation
JEL Classification: H25, K34
Suggested Citation: Suggested Citation