Consolidated show-cause notice for 2017-18 to 2021-22 sustained; Section 74 not seen as prohibiting consolidation

HC dismissed the writ petition challenging issuance of a consolidated show cause notice for multiple periods (2017-18 to 2021-22), holding that Section 74 of the CGST/DGST Acts does not expressly prohibit a consolidated notice and the objection does not raise a jurisdictional defect warranting relief under Article 226. The court declined to adjudicate on the specific contention as to FY 2017-18 under Section 74(10), leaving the petitioner free to pursue appropriate proceedings independently. Petition dismissed.

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Writ petition challenges validity of a Show Cause Notice ("SCN") dated 29 May 2024 covering Financial Years 2017-18 to 2021-22 under the Central Goods & Services Tax Act, 2017 ("CGST")/Delhi Goods & Services Tax Act, 2017 ("DGST"). The principal contention was that respondents impermissibly issued a consolidated notice for the multi-year period. On an ex-facie reading of Section 74 of the CGST/DGST Acts, the court stated it was "unable to sustain that challenge in the absence of any prohibition that may have been statutorily engrafted in this respect," and held that such a complaint did not amount to a jurisdictional question warranting relief under Article 226. As to FY 2017-18 and Section 74(10), the petitioner was permitted to "initiate appropriate proceedings independently." Applying settled principles governing entertainability of SCN challenges under Article 226, the court concluded that it "find[s] no ground to entertain the instant writ petition," and the petition was dismissed (subject to the foregoing observation). CM application for exemption was allowed.

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