SCN-first step of litigation
‘SCN’ is a document served by the department on a person asking him to explain with reasons as to why a particular course of action should not be taken against him.
It is similar to an opportunity of being heard………….
Principle of Natural Justice: audi alteram partem
Meaning …………‘Let the other side be heard as well’
That no person can be adjudged guilty without being given an opportunity to answer charges against such person.
And to hear a person, such person should be “put at notice”

Honorable Supreme Court in case of Commissioner of Central Excise, Bangalore Vs Brindavan Beverages private ltd. observed that:
“The show cause notice is the foundation on which the department has to build up its case……………………………. “
Important Points of SCN:
 It should be under the specific section of the Law
 It should clearly states various aspects about the charges or allegations, so that the person can understand the allegations and answer them

 If tax, interest and penalty and if a particular point is not raised in the show cause notice, it cannot be raised later at any of the appellate stage(s).

 It should be Time Bound
 Any other communication, letter, endorsement, suggestion or advisory from tax Department cannot be considered to be a show cause notice

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