Composite intimation and show cause notice across multiple tax periods: composite notices quashed; authorities may reissue separately.

Validity of composite intimation and show cause notice across different financial years is addressed: where subject matters pertain to distinct tax periods, separate intimations and, if required after considering responses, separate show cause notices must be issued, and combined notices are impermissible, resulting here in quashing of the composite intimation and composite show cause notice with liberty to reissue. Authorities are permitted to initiate fresh proceedings despite petitioners non-response, provided action is taken within the specified timelines and not beyond the dates indicated in the decision.

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Issues: (i) Whether a composite intimation in Form DRC-01A and composite show cause notice in Form DRC-01 under Section 74 of the CGST Act can be issued by clubbing tax demands pertaining to multiple financial years where the subject matters for those years are different; (ii) Whether the intimation dated 20.06.2024 (DRC-01A) and show cause notice dated 05.08.2024 (DRC-01) should be quashed and whether the authority has liberty to initiate fresh proceedings within a prescribed period.

Issue (i): Whether a composite intimation/notice by clubbing multiple financial years is permissible when subject matters differ.

Analysis: The issue focuses on the permissibility of issuing a single composite intimation or show cause notice under Section 74 where returns/periods and the subject matter differ across financial years. The statutory definition of "tax period" and the nature of the subject matters for the years in question were examined to determine if consolidation was permissible. Consideration was given to whether the matters across years were one and the same such that a composite proceeding would be valid.

Conclusion: Composite intimation and composite show cause notice by clubbing demands for multiple financial years where the subject matters are different are not maintainable; the conclusion is in favour of the assessee.

Issue (ii): Whether the specific intimation dated 20.06.2024 and show cause notice dated 05.08.2024 should be quashed and whether the authority may re-initiate proceedings.

Analysis: The determination addressed the validity of the impugned DRC-01A and DRC-01 issued in the present facts and the consequences flowing from defective consolidation. The availability of statutory limitation for adjudication and the effect of non-response by the petitioner were considered only to the extent necessary to allocate liberty to the authority to act within law and time limits fixed by the Court.

Conclusion: The intimation dated 20.06.2024 (DRC-01A) and show cause notice dated 05.08.2024 (DRC-01) are quashed and set aside. The respondents are granted liberty to initiate appropriate proceedings afresh in accordance with law within the timelines specified by the Court; the conclusion is in favour of the assessee.

Final Conclusion: The decision results in quashing the impugned composite intimation and show cause notice while permitting the revenue to initiate separate proceedings as required by law within the time specified by the Court, preserving the authority's right to adjudicate where lawfully permissible.

Ratio Decidendi: Where the subject matter or issues for different tax periods/financial years are not the same, consolidation into a single composite intimation or show cause notice under Section 74 of the CGST Act is impermissible; defective composite proceedings must be quashed, subject to the authority's right to re-initiate separate proceedings in accordance with statutory limitation and procedure.

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