How a Service Tax Demand dropped for sending notice to a WRONG Person

Sometimes, the smallest detail can decide the outcome of a tax case.

In this video, we break down a real Service Tax case for in one of clients in Bangalore, where a huge tax demand was wiped out—all because the notice was addressed to the wrong person.

Here’s what happened:

The tax department issued a Show Cause Notice (SCN) and an Order-in-Original (OIO)

But instead of addressing the LLP (the real assessee), they sent it to an individual partner

At appeal, this jurisdictional defect collapsed the entire demand

Key takeaways for CFOs & Tax Teams:
✅ An LLP is a separate legal entity—partners are not automatically liable
✅ Jurisdictional defects go to the root; they cannot be corrected later
✅ Always check who the notice is addressed to before arguing on rates, exemptions, or timelines

This case is a reminder: sometimes the smallest legal defect can save crores in tax demands.

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Видео How a Service Tax Demand dropped for sending notice to a WRONG Person канала Pradeep Reddy - Unnathi Partners