2025-VIL-1081-BOM
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SGST High Court Cases

GST - Bunching of Show Cause Notices for Different Financial Years – Petitioners aggrieved by the issuance of consolidated SCNs covering multiple Financial Years from 2017-18 to 2023-24, demanding GST, reversal of input tax credit, and other dues - HELD - The issuance of consolidated Show Cause Notices covering multiple Financial Years, making a composite demand for multiple years without separate adjudication per year, is impermissible under the Scheme of the CGST Act. The Act contemplates assessment and levy of tax based on the filing of returns for each tax period, which is either monthly or annual. The provisions for assessment, limitation, and recovery of tax dues are structured around the tax period, which is typically a Financial year. The term "tax period" is defined to mean the period for which the return is required to be furnished - The provisions for determination of tax liability under Sections 73 and 74 of the CGST Act also refer to the "financial year" and prescribe separate limitation periods for each financial year. The proper officer has to issue separate SCNs for each financial year as the limitation period and other statutory safeguards are applicable independently for each year - Relying on the decisions of the Madras High Court and other High Courts, it is held that the bunching of SCNs for multiple Financial years frustrates the limitation scheme, prevents the assessee from giving year-specific rebuttals, and amounts to jurisdictional overreach by the authorities. The fact involved before the Delhi High Court in Ambika Traders case, being distinct and revolving around the wrongfully claimed ITC, which was prescribed for the subsequent years, is quite distinct from the facts of instant case. In any case, the SLP was withdrawn by Ambika Traders before the Apex Court and the said decision will not apply to facts in the present case - The consolidated show cause notices issued by the revenue authorities are quashed and the writ petitions are allowed
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