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2024 (11) TMI 518 - HC - GST


Issues:
Consolidation of demand for multiple financial years in show cause notices under the Central Goods and Services Tax (CGST) Act, 2017.

Analysis:
The primary issue in this case is whether the show cause notices dated 05.08.2024, which consolidated demands for multiple financial years (2017-2023), are valid under the CGST Act. The petitioner challenged the consolidation of tax periods in a single notice, arguing that separate notices should have been issued for each assessment year as per Section 73 of the CGST Act. The Court referred to a similar case involving M/s. Bangalore Golf Club where a consolidated show cause notice was deemed flawed. The Court emphasized that each assessment year must be treated independently, citing the judgment of the Hon'ble Supreme Court in State of Jammu and Kashmir and Others vs. Caltex (India) Ltd., AIR 1966 SC 1350. The Court found the consolidation of demands for multiple assessment years to be in violation of the CGST Act and legal precedents.

The Court observed that Section 73(10) of the CGST Act specifies time limits for actions related to tax due, emphasizing that actions must be completed within the designated year as per legal provisions. Relying on established legal principles and precedents, the Court concluded that the respondent erred in issuing consolidated show cause notices covering multiple assessment years. Consequently, the Court quashed the impugned show cause notices dated 05.08.2024 and directed the respondent to issue separate notices for each assessment year in compliance with Section 73 of the CGST Act.

The judgment in M/s. Bangalore Golf Club vs. Assistant Commissioner of Commercial Taxes was cited to support the decision to quash the impugned notices dated 05.08.2024. The Court allowed the petition, disposed of the case in line with the Bangalore Golf Club judgment, and reserved liberty for the respondents to issue separate notices for each assessment year as required by the CGST Act. The impugned notices and all subsequent proceedings were quashed, with a directive to proceed in accordance with the law by issuing separate notices for each assessment year.

In conclusion, the Court's decision centered on the invalidity of consolidated show cause notices for multiple assessment years under the CGST Act, emphasizing the need for separate notices for each assessment year to comply with legal requirements and precedents.

 

 

 

 

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