As per existing instructions, a party has an option to waive show cause notice provided the charges are explained to the party. However, it has come to the notice that in some cases such waiving of show cause notice is creating problems particularly when cases involve offences or high stakes and/ or involve offences or high stakes and/ or involve legal questions. The CBEC has taken note of the fact that in such cases waiving of the show cause notice and/ or not explaining the charges and the grounds thereof to the concerned parties leads to defective proceedings against the interest of the revenue.

2.     After careful consideration the Board has, therefore, decided that wherever, prima facie, offences of serious nature or high stakes and/ or legal questions are involved, show cause notices must not be waived and the same should be issued and served on the concerned parties. However, if the concerned party requires expeditious adjudication for any reasons, they may file their replies at the earliest, and request that their case be heard expeditiously for early finalisation of the adjudication proceedings.

3.     These instructions should be adhered to strictly.