Show Cause Notice - NACEN Lesson
A Study Material issued by NACEN states,
The Show Cause Notice is more than a notice. It gives an opportunity to the Department of leading evidence in support of its allegations and equally it gives an opportunity to the person/firm/company charged with, to make representation and adduce evidence against the allegations or charges made out against them.
1. The Show Cause Notice should be issued only after proper inquiry/investigation i.e. when the facts used are ascertained and allegations are justified.
2. The Show Cause Notice should be in writing (not oral). The date of issue of Show Cause Notice should be clearly written.
3. The Show Cause Notice should not be an exercise in deliberate ambiguity. It should be specific and unambiguous.
4. It should be clear on facts and legal provisions. Violation of the provisions of law should be clearly brought out in the Show Cause Notice.
5. The charges should be specific. They should not be vague/or contradictory.
6. The provisions for imposing penalty and reasons and conclusion for the same be clearly mentioned.
7. Copies of the relied upon documents should be listed in seriatim as per the references made in the Show Cause Notice and given as Annexures to the Notice.
8. The duty amount needs to be quantified and explained in a chart as to how the same was arrived at. The duty demanded should be manifestly specified in the notice itself.
9. When mis-statement or suppression of facts is alleged in the Show Cause Notice, these expressions must be preceded by the word ‘willful'. Likewise, when the allegation is that of contravention of the provisions of the Act or the rules, the same must be followed by the expression ‘with intent to evade payment of duty'.
10. If the time limit to reply is provided in Law, it should be adhered to, otherwise, adequate time should be given for filing a written reply.
11. The Show Cause Notice should clearly mention whether the noticee(s) wishes to be heard in person, apart from filing a written representation, in the matter.
12. The authority to which the Show Cause Notice is answerable should be specifically stated along with the postal address.
Obviously these things are not taken seriously.