2025 (1) TMI 1513 - HC - GST

Challenge to order passed un/s 73 of Karnataka Goods and Services Tax Act 2017 clubbing the financial years from 2019-20 to 2023-24 - whether the impugned order requires interference at the hands of this Court? - HELD THAT - Admittedly Annexure-C order passed under Section 73 of 2017 Act is in respect of the financial years 2019-20 to 2023-24. By clubbing more than one financial year the petitioner was issued with show-cause notice and the order is passed under Section 73 of 2017 Act which is impermissible. In terms of Section 73 of KGST Act specific action must be completed within the relevant year since the limitation is prescribed. Hence clubbing multiple assessment years is impermissible. This Court in an identical fact situation in M/S. VEREMAX TECHNOLOGIE SERVICES LIMITED VERSUS THE ASSISTANT COMMISSIONER OF CENTRAL TAX BENGALURU. 2024 (9) TMI 1347 - KARNATAKA HIGH COURT allowed the writ petition and set aside the impugned show-cause notice with liberty to the Authorities to issue separate show-cause notices for each assessment year in compliance of Section 73 of KGST Act and proceed further in the matter. Petition allowed.

Summary

**Summary of Judgment: Karnataka High Court****Case Citation:** TMI**Judge:** HON'BLE MR JUSTICE S.G. PANDIT**Parties:**- **Petitioner:** Represented by Sri. Sanyam Kshetrapal for Sri Narendra A.- **Respondent:** Represented by Sri. Shivaprabhu Hiremath, Additional Government Advocate (AGA).**Proceedings:**- The matter was heard via video conference, with consent for final disposal.- The petitioner challenged an order dated 29.07.2024, issued under Section 73 of the Karnataka Goods and Services Tax Act, 2017 (KGST Act), which clubbed the financial years 2019-20 to 2023-24 in a single show-cause notice and order.**Legal Issue:**- The central question was whether the impugned order, which clubbed multiple financial years, required interference by the Court.**Court's Analysis:**- The Court noted that Section 73 of the KGST Act mandates specific actions to be completed within the relevant financial year due to prescribed limitations.- Clubbing multiple assessment years in a single notice and order is impermissible under the Act.- A coordinate bench had previously set aside a similar order in W.P. No. 15810/2024, emphasizing the need for separate notices for each financial year.**Holding:**- The writ petition was allowed.- The impugned order dated 29.07.2024 (Annexure-C) and related order dated 04.11.2024 (Annexure-E) were quashed.- The Court granted liberty to the respondents to issue separate show-cause notices for each financial year in compliance with Section 73 of the KGST Act, allowing them to proceed further in accordance with the law.This judgment underscores the necessity for adherence to statutory requirements regarding the issuance of tax-related notices and orders, particularly the prohibition against clubbing multiple financial years in a single action under Section 73 of the KGST Act.