Composite adjudication under GST is impermissible for distinct years; year-wise orders and proper hearing are required.

Composite adjudication covering distinct financial years under the CGST framework is impermissible where tax liability is proposed to be determined under Sections 73 or 74. The Kerala HC held that a single composite order for multiple years could prejudice the determination of tax due and was therefore not legally valid. Separate year-wise orders must be passed for each financial year covered by the composite show cause notice, and this must be done after granting an effective opportunity of hearing. The proceeding was consequently directed to be adjudicated afresh on a year-wise basis.

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Issues: Whether a composite order could be passed for multiple financial years covered by a composite show cause notice, and whether separate orders were required for each year.

Analysis: A Division Bench ruling held that composite orders are not legally valid for determination of short payment of tax under Section 73 or Section 74 of the CGST Act. On that basis, the respondents could not determine tax liability for distinct years through a single composite order, since such a course would prejudice the determination of tax due. The proper course was to pass year-wise orders after granting an effective opportunity of hearing.

Conclusion: Separate orders were required for each financial year covered by the notice, and the petitioner succeeded on that issue.

Final Conclusion: The proceeding was disposed of by directing year-wise adjudication on the composite notice after affording hearing.

Ratio Decidendi: Where tax liability is proposed to be determined for multiple years under the CGST framework, a composite adjudication covering distinct assessment periods is impermissible and separate orders must be passed for each year after due hearing.

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