Show Cause Notice issued within five years from date of knowledge of Department is valid - Supreme Court
IN an important ruling yesterday, the Supreme Court held that in a case where there was intent to evade duty, a Show Cause Notice issued within five years from the date of knowledge by the Department is not hit by limitation.
The repercussions of this judgement will be the hot topic for the next few years and both the assessees and the Department will rely on this judgement. If the converse is true – then, if the intent to evade, suppression etc , are absent, the limitation would be one year from the date of knowledge of the Department. Is it so? Interesting days ahead.
We bring you this judgement today.