consolidated orders for fy 2019 -20, 2020-21 issued

[giri gattupalli]

respected sir, consolidated order in FORM DRC-07 issued on my client for FY 2019-20. 2020-21 in sep 2022. issue is still pending with ADC. in recent times high courts are strucking down composit orders.  as the limitation period  for FY 19-20, 2020-21 is crossed, is there any chance to get re assed for FY 2019-20, and 2020-21, if high court struck down the composite order.

thanking you

[Shilpi Jain]

Limitation period applies for issuance of the show cause notice. The time limit in the law of 1 year given for passing of orders is not mandatory but more recommendatory.

So on limitation you cannot contest (Assuming SCN is issue in time). However, you can consider approaching courts for challenging composite SCN and order by consulting a professional in this regard as the analysis will differ based on facts of each case.

[Sadanand Bulbule]

There are judgements which support and oppose such composite SCNs. There is no harm in taking a chance as indicated by madam.

[VENU K]

High Courts may strike down composite orders due to procedural infirmities, it is highly probable that the matter would be remanded for fresh adjudication. In such a scenario, Section 75(3) of the CGST Act, 2017 would provide a fresh two-year period for the department to issue separate orders for FY 2019-20 and 2020-21, allowing for reassessment. Therefore, there is a significant chance of reassessment for these financial years if the High Court strikes down the composite order and remands the case.

[KASTURI SETHI]

In case Section 74 has been invoked in the SCNs, it is worthwhile to peruse the following case laws which are in favour of the department :-

(i) 2025 (11) TMI 1184 - SC Order

(ii) Mathur Polymers Vs. UOI - 2025 (9) TMI 112 - DELHI HIGH COURT

AI Summary

GST reassessment may follow if a composite order is struck down and the matter is remanded for fresh adjudication. If a court strikes down a composite SCN and remands the matter, the department may rely on Section 75(3) of the CGST Act to obtain a fresh two year period to issue separate orders for each financial year, permitting reassessment for FY 2019 20 and 2020 21; limitation for issuing the SCN itself remains a distinct constraint and judicial views on composite SCNs are divided.