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of <h1>Single show-cause notice covering multiple financial years held invalid; assessment order and rectification rejection quashed</h1> <h3>Instakart Services Private Limited Represented By Its Authorized Signatory Mr Ritesh Lunia Versus The Additional Commissioner Chennai South Commissionerate, Chennai</h3> HC held that issuing a single show-cause notice and passing an assessment order covering multiple financial years (July 2017-March 2023) was without ... Bunching of SCN - issuance of single show cause notice/orders for more than one financial year - HELD THAT:- Considering the submissions made by the learned counsel for the petitioner and by following the decision in SMT R ASHAARAJAA, J. RAJENDRAN, R. DEEPAK VIGNESHVAR AND OTHERS VERSUS THE SENIOR INTELLIGENCE OFFICER, THE SUPERINTENDENT OF CENTRAL TAX CGST CENTRAL EXCISE AND OTHERS [2025 (7) TMI 1402 - MADRAS HIGH COURT], this Court holds that in this case, without any jurisdiction, the impugned order came to be passed for more than one financial year, i.e., for the period from July 2017 to March 2023, which is impermissible in law and hence, the same is liable to be quashed. The impugned assessment order dated 06.01.2025 and the consequential rectification rejection order dated 30.04.2025 are quashed - petition disposed off. 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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