Payments Made During Investigation Without SCN Do Not Constitute Payments Against Demand: CESTAT

The CESTAT addressed whether payments made during an investigation, without a Show Cause Notice (SCN), can be considered as payments against a demand. The Tribunal ruled that such payments are not valid unless a formal SCN is issued. The ruling highlights the necessity of procedural compliance, including the issuance of an SCN, before payments can be acknowledged as settling a demand. This decision ensures that tax enforcement processes are followed correctly and protects the rights of parties involved in investigations.