Single show-cause notice covering multiple financial years held invalid; assessment order and rectification rejection quashed HC held that issuing a single show-cause notice and passing an assessment order covering multiple financial years (July 2017-March 2023) was without ...
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Single show-cause notice covering multiple financial years held invalid; assessment order and rectification rejection quashed
HC held that issuing a single show-cause notice and passing an assessment order covering multiple financial years (July 2017-March 2023) was without jurisdiction and impermissible, relying on existing precedent. Consequently, the assessment order dated 06.01.2025 and the rectification rejection dated 30.04.2025 were quashed. The writ petition was allowed and disposed of.
Writ petition challenges impugned assessment order dated 06.01.2025 and rectification rejection dated 30.04.2025 on ground of "bunching" show-cause notices/orders across multiple financial years. Court follows its earlier common order dated 21.07.2025 in W.P.Nos.29716 of 2024, etc., holding: "28. (i) The GST Act permits only for issuance of show cause notice based on the tax period. Therefore, if the annual return is filed, the entire year would be considered as a tax period and accordingly, the show cause notice shall be issued based on the said annual returns. (ii) If show cause notice is issued before the filing of annual returns, the same can be issued based on the filing of monthly returns; (iii) If show cause notice is issued after the filing of annual returns or after the commencement of limitation, the said notice shall be issued based on the annual returns with regard to the relevant financial year. (iv) No show cause notice can be clubbed and issued for more than one financial year since the same is impermissible in law. (v) In these cases, without any jurisdiction, the impugned show cause notices/orders came to be issued/passed for more than one financial year, which is impermissible in law and hence, the same is liable to be quashed. Accordingly, the impugned show cause notices/orders stand quashed based on the aspect of clubbing of show cause notices for more than one financial year." Applying that principle, the impugned orders covering July 2017-March 2023 are quashed. Respondent granted liberty to initiate separate proceedings for each financial year. No costs; connected petitions closed.
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