Composite GST show cause notice for multiple years set aside for pre-concluded findings on registration and liability.

A composite GST show cause notice covering multiple assessment years was found unsustainable, because separate proceedings are required for distinct years and a single notice cannot merge them without legal basis. The notice was also objectionable because its wording suggested that compulsory registration and tax liability had already been decided, whereas a show cause notice must only propose action and leave final determination to adjudication after considering the noticee's reply and documents. The notice was therefore set aside to that extent, with liberty to issue fresh notices separately for the relevant assessment years and decide the matter afresh.

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Issues: Whether a composite show cause notice issued for multiple assessment years was legally sustainable, and whether the notice suffered from pre-decisional observations indicating that the question of registration and liability had already been concluded.

Analysis: The notice was issued under the GST law for more than one assessment year in a single proceeding. The Court found that such a composite notice was not legally sustainable, following the settled view that separate proceedings are required for distinct assessment years. The language of the notice also gave the impression that the authority had already concluded the question of compulsory registration and tax liability, which is impermissible in a show cause notice. A notice must only propose action on the basis of available materials and must leave the final determination to the adjudicating authority after consideration of the reply and documents produced by the noticee.

Conclusion: The composite show cause notice was interfered with and set aside to the extent it covered multiple assessment years and carried a pre-concluded approach on registration and liability. Fresh notices may be issued separately for the relevant assessment years, and the authority must decide the matter afresh after due consideration of the petitioner's objections and documents.

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