233.            The taxable person was a supplier of both taxable as well as exempted goods. In a particular consignment, the Assistant Commissioner noticed that the goods were taxable but the taxable person has wrongly treated the goods as exempted goods leading to non payment of tax on taxable goods. He issued a show cause notice on the taxable person on 3.4.2017 demanding:

Tax not paid= 2,00,000

Interest payable u/s 50

Penalty= 100% of tax

The officer further issued a statement on 10.05.2017 demanding the tax not paid for subsequent period:

Tax short paid =1 lacs

Interest payable u/s 50

Penalty= 100% of tax

A Ltd objects that since the officer has already issued a show cause notice, therefore, a new show cause notice is not valid until & unless the previous proceeding is disposed off. Discuss.

 As per section 73(3) & 73(4) of the CGST Act, where a statement has been issued containing details of tax short paid/ not paid or erroneously refunded or input tax credit wrongly availed/utilized for the subsequent period, then such statement is deemed SCN for the subsequent period. As the statement issued on 10.5.2017 for period other than period for which previous SCN was issued, thus, the statement is a deemed SCN & is valid.