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of <h1>Clubbing of show-cause notices under GST violated tax period principle, leading to quashing and separate yearly proceedings.</h1> Clubbing of show-cause notices across multiple financial years was held to violate the tax period principle because the impugned order covered 2022-23 to ... Clubbing of show cause notices for multiple financial years - Tax period and issuance of show cause notice based on annual return - Maintainability of assessment qua each financial year - Writ jurisdiction of High Court - Doctrine of lack of jurisdiction where notice covers more than one tax period - HELD THAT:- In the case on hand, it is very clear that the impugned order came to be passed for more than one financial year, i.e., 2022-23 to 2025-26. When such being the case, by following the aforesaid order passed in [2025 (7) TMI 1402 - MADRAS HIGH COURT], this Court holds that in this case, the impugned order was passed by the respondent without any jurisdiction, which is impermissible in law and hence, the same is liable to be quashed. Yet another aspect raised by the petitioner is with regard to the issuance of notice under Section 73 of the GST Act for the Financial Years 2024-25 & 2025-26. As rightly contended by the petitioner, the provisions of Sections 73 & 74 of the GST Act stood omitted with effect from 01.04.2024 and only the provisions of Section 74A of the GST Act will apply from the financial years 2024-2025 onwards. Hence, it is clear that the impugned order came to be passed by the respondent in total non-application of mind. In such view of the matter, this Court is inclined to quash the impugned order passed by the respondent on this aspect also. The impugned assessment order and consequential orders are quashed; the show cause notice is set aside, and the State is granted liberty to initiate separate proceedings for each financial year in accordance with the correct statutory provisions and the tax-period principle. Issues: (i) Whether show cause notices/orders can be clubbed and issued for more than one financial year (bunching of notices) and (ii) Whether issuance of notice/assessment under Section 73 for financial years 2024-25 and 2025-26 is permissible after omission of Sections 73 & 74 and applicability of Section 74A.Issue (i): Whether issuance of a single show cause notice/order covering multiple financial years is permissible.Analysis: The statutory scheme permits issuance of show cause notices linked to the tax period; where annual returns constitute the tax period, notices must be based on that annual return, or where issued before annual returns are filed, on monthly returns. The practice of clubbing notices across distinct financial years lacks statutory basis and results in proceedings without jurisdiction where multiple years are combined in one notice/order.Conclusion: The clubbing of show cause notices/orders for more than one financial year is impermissible and such notices/orders are liable to be quashed. The Conclusion is in favour of the petitioner.Issue (ii): Whether notices and assessment proceedings for FYs 2024-25 and 2025-26 under Section 73 are valid after Sections 73 and 74 were omitted with effect from 01.04.2024 and Section 74A applies.Analysis: Sections 73 and 74 having been omitted with effect from 01.04.2024, the post-omission statutory regime requires reliance on Section 74A for the financial years 2024-25 onwards. Issuing notices or passing assessments under Section 73 for periods to which Section 74A applies reflects non-application of mind and lacks statutory foundation.Conclusion: Issuance of notice/assessment under Section 73 for FYs 2024-25 and 2025-26 is impermissible; those parts of the proceedings are quashed. The Conclusion is in favour of the petitioner.Final Conclusion: The impugned assessment order and consequential orders are quashed for lack of jurisdiction arising from clubbing of multiple financial years and for being founded on provisions omitted by statute; the respondents are permitted to initiate separate proceedings for each financial year in accordance with the applicable statutory provision.Ratio Decidendi: Show cause notices and assessment orders must be issued in accordance with the tax period specified by law and cannot be clubbed across multiple financial years; where statutory amendments omit prior provisions, proceedings must be founded on the provisions in force for the relevant financial year (Section 74A for post-01.04.2024 periods).
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