Mumbai: The Bombay High Court has ruled that tax authorities must issue a pre-consultation notice before serving show cause notices (SCNs) for service tax demands exceeding Rs 50 lakh. The court delivered the judgment while hearing seven petitions, including those filed by developers, banks and contractors.

Petitioners Challenged SCNs Across Sectors

The petitions were filed by Rochem Separation Systems (India), Pyramid Developers, Leighton India Contractors Pvt. Ltd., Abhyudaya Co-Operative Bank Ltd., M.R. Realtors, Galaxy Realtors and Vinod Ranvirsing Vij, proprietor of Clinque Aesthetica. All had challenged SCNs issued by the Service Tax Department without any pre-consultation. The HC had granted interim relief to petitioners on January 30, 2023 by staying the SCNs.

Pre-Consultation

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