{"id":2818,"date":"2025-02-27T19:46:41","date_gmt":"2025-02-27T14:16:41","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=2818"},"modified":"2025-02-27T19:46:41","modified_gmt":"2025-02-27T14:16:41","slug":"scn-issued-for-short-payment-of-tax-on-commission-income-is-valid-if-revenue-considered-all-relevant-answers-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/scn-issued-for-short-payment-of-tax-on-commission-income-is-valid-if-revenue-considered-all-relevant-answers-hc","title":{"rendered":"SCN Issued for Short Payment of Tax on Commission Income is Valid if Revenue Considered All Relevant Answers | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000389131\/scn-issued-for-short-payment-of-tax-on-commission-income-is-valid-if-revenue-considered-all-relevant-answers-hc\">Eastland Switchgears Pvt. Ltd. Versus Assistant Commissioner of Revenue (2025) 27 Centax 127 (Cal.)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Rajarshi Bharadwaj<\/strong>, J.<\/li>\n<li><strong>S\/Shri Ankit Kanodia, Ms Megha Agarwal<\/strong> &amp; <strong>Piyush Khaitan<\/strong> for the Petitioner.<\/li>\n<li><strong>S\/Shri Anirban Ray, Md. T. M. Siddiqui, N. Chatterjee, Tanoy Chakraborty, Saptak Sanyal<\/strong> &amp; <strong>Debraj Sahu<\/strong> for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner, a private limited company engaged in the manufacturing and selling of electrical goods, was registered under the CGST Act, 2017. During the relevant period, the petitioner received a show-cause notice (SCN) from the Assistant Commissioner of Revenue (ACR) for short payment of tax on commission income. The petitioner claimed an exemption under Entry No. 12AA of Notification No. 9\/2017-IGST (R), contending that commission income was an exempt supply. However, the ACR, after considering the petitioner\u2019s reply, proceeded with issuing the SCN. Aggrieved by this, the petitioner filed a writ petition before the Calcutta High Court, challenging the validity of the notice.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble Calcutta High Court held that the show-cause notice was legally valid, as it served as an integral step in the tax adjudication process. The court emphasized that the SCN adhered to the principles of natural justice, allowing the petitioner to present further submissions and evidence before the revenue authorities. The authority had duly considered the petitioner\u2019s reply and determined that the commission income could not be treated as an exempt supply. Since the issue of exemption required factual adjudication, the petitioner was directed to pursue the available statutory remedies under the CGST Act. Accordingly, the writ petition was disposed of in favour of revenue.<\/p>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li>Entry No. 12AA of Notification No. 9\/2017-IGST (Rate) dated 28\/06\/2017<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Eastland Switchgears Pvt. Ltd. Versus Assistant Commissioner of Revenue (2025)&hellip;<\/p>\n","protected":false},"author":5,"featured_media":2827,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-2818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SCN Issued for Short Payment of Tax on Commission Income is Valid if Revenue Considered All Relevant Answers | HC<\/title>\n<meta name=\"description\" content=\"The Calcutta High Court upheld the validity of the SCN, ruling that the commission income was not an exempt supply and directing the petitioner to pursue statutory remedies under the CGST Act.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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