SCN Proposals Must Align with Law, Not External Sources: CESTAT Mumbai

Shipping Corporation of India Ltd Vs Commissioner of Central Excise & Service Tax (CESTAT Mumbai) Proposals in the show cause notice (SCN) should necessarily be founded on the letter of law and, not on external sources The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Mumbai set aside a tax demand of ₹3.58 crore against Shipping Corporation of India Ltd (SCI) for ‘business auxiliary service’ and ‘taxable service’ provided between October 2009 and September 2014. The case arose after an audit found that SCI had not paid service tax on ‘trade commission’ retaine...