SCN must be served prior to determination of tax leviable on ‘deemed supply’

Metenere Ltd. Vs. Union Of India (Allahabad High Court)

Although in terms of the provisions of Section 35 (6), the unaccounted goods are ‘deemed to be supplied’ however, determination and quantification of the tax on the said ‘deemed supply’ has to be done in accordance with Section 73 or Section 74 of the Act.

A perusal of Section 73 and 74 makes it clear that a show cause notice is bound to be served prior to determination of the tax leviable on the ‘deemed supply’ whereas in the present case no such notice is avai

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