Zigma Marketing (India) Private Limited Vs Assistant Commissioner (ST) (FAC) ( Madras High Court)
Conclusion: Demanding of tax which was over three times the tax proposed in the original show cause notice (SCN) was not justifies as the order was passed in complete violation of natural justice and beyond the scope of the SCN.
Held: In the instant case, initially, the show cause notice came to be issued by the Officer for a sum of Rs.53,812/-towards tax liabilities. However, while passing the impugned assessment order, the Officer had demanded a sum of Rs.1,64,143/- towards tax liabilities, which was not proposed either in the aforesaid show cause notice or in any manner, due to which, no opportunity was provided to assessee to explain their case on the said aspect. In such case, it was clear that in total non-application of mind, the Officer had passed the impugned order, which travelled beyond the scope of show cause notice dated 18.11.2024 and hence, the said order was liable to be set aside. Further, the Officer should consider the same and issue a 14 days clear notice, by fixing the date of personal hearing and thereafter, pass appropriate orders on merits and in accordance with law. Considering the fact that the impugned order itself had been set aside, this Court was of the opinion that the attachment made on the bank account of assessee could not survive any longer and hence, it was to be lifted.
