2024 (9) TMI 1347 - HC - GST

Flawed SCN - it is contended that notices issued u/s 73 of the Central Goods and Services Tax (CGST) Act, 2017, are flawed due to the improper consolidation of multiple tax periods into a single show cause notice - HELD THAT - This Court finds that the respondent erred in issuing a consolidated show cause notice for multiple assessment years, spanning from 2017-18 to 2020-21. Section 73 (10) of the CGST Act mandates a specific time limit from the due date for furnishing the annual return for the financial year to which the tax due relates. The law stipulates that particular actions must be completed within a designated year, and such actions should be executed in accordance with the law's provisions. The principles enunciated in the judgment cited by the Hon ble Supreme Court in THE STATE OF JAMMU AND KASHMIR AND OTHERS VERSUS CALTEX (INDIA) LTD. 1965 (12) TMI 125 - SUPREME COURT are directly applicable to the present case. This Court concludes that the show cause notices issued by the respondent are fundamentally flawed. The practice of issuing a single, consolidated show cause notice for multiple assessment years contravenes the provisions of the CGST Act and established legal precedents. Petition allowed.

Summary

The petitioner challenged a show cause notice and order issued by the respondent for tax periods 2017-18 to 2020-21, citing improper consolidation of multiple tax periods. The court found the consolidated notice flawed, ruling in favor of the petitioner. The court quashed the impugned notice and allowed separate notices to be issued for each assessment year in compliance with the CGST Act.