In Brief
The Union of India challenged a Delhi High Court order that had entirely set aside a service tax show cause notice dated 4 October 2016 and directed issuance of a fresh notice. The High Court had found part of the original notice invalid due to an amendment to Section 105 of the Finance Act, 1994 by the Finance Act, 2017, but recognized that other demands in the notice remained valid. The Supreme Court held that the High Court erred: instead of setting aside the entire notice, it should have directed adjudication of the surviving demands in the original notice, as issuing a fresh notice would be barred by limitation. The appeal was allowed and the original notice was directed to proceed on the surviving issues.
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