SCN

Show Cause Notice A Show Cause Notice is a formal legal document issued by an authority demanding an individual or business to explain or justify why a proposed action, such as a tax demand, penalty, or license cancellation, should not be executed against them. Example The GST department issues an SCN to a company for claiming excess Input Tax Credit, demanding an explanation and supporting documents within a deadline (VERIFY: 30 days) to avoid a proposed penalty of ₹1 Lakh (VERIFY: penalty amount). When it matters in practice Receiving an SCN requires immediate attention and professional drafting of a reply, as failure to respond adequately leads to the confirmation of the proposed tax demand or penalty. Related terms - DRC-01 - Assessment - Adjudication Related Service Tax Litigation