Demand raised after Show Cause Notice to present entity only is also Void & not applicable on the previous entity of the same business.
Andhra Pradesh High Court, in the case of Commissioner of Customs, Central Excise and Service tax, Guntur V. M/s Narayana Coaching Centre, 2015 held that adjudication order does not grant any power to department to proceed against appellant in absence of show-cause notice which implies that without issuing show cause notice, demand raised by department shall be void and thus proceedings in connection herewith is a nullity and adjudication thereof is also non est.
As per the facts of the case, the proprietary concern of the appellant was taken over by M/s Narayana Learning Pvt. Ltd. after 30-09-2010. The Show cause notice issued for the F.Y. 2010-11 was not issued to the proprietary concern separately but was issued to the Private Ltd for the entire F.Y. Thus, the Department cannot demand service tax for the period prior to 30-09-2010 in absence of a show cause notice to the proprietary concern.
Further, the Apex Court also confirmed the view of High court in the judgment ibid dismissing the Special leave petition filled by Revenue against the High Court order and held that without a Show Cause Notice has been issued, adjudication is a nullity.