2026-VIL-170-KER
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SGST High Court Cases

GST – Clubbing of Show Cause Notice, Composite notice for multiple assessment years - Dismissal of SLP by Supreme Court - Petitioners contended that validity of issuance of composite notices for multiple years was already decided against by the Division Bench in previous judgments - Dept argued that there was no prohibition in the Act against issuing composite notices and the decisions of the Delhi High Court upholding the validity of such notices had been upheld by the Supreme Court - Whether the competent authorities can issue composite notices under the CGST/SGST Act 2017 for multiple assessment years – HELD – This Court in its previous decisions in Lakshmi Mobile Accessories v. Joint Commissioner (Intelligence & Enforcement) and Tharayil Medicals v. The Deputy Commissioner elaborately considered this issue and concluded that such composite notices cause serious prejudice to the taxpayers for various reasons - The scheme of the CGST Act provides for the power of the proper officer under Section 74(1) to be exercised in relation to each financial/assessment year where the pre-conditions for invoking the power exist. Issuing a consolidated SCNs covering multiple years would cause prejudice to the assessee by curtailing the statutory period available for the assessee to put forth its contentions. Further, a consolidated notice would result in a higher tax, penalty, and fee/pre-deposit for preferring an appeal, which would go against the principles of fairness in taxation - The decisions of the Delhi High Court upholding the validity of composite notices, which were subsequently upheld by the Supreme Court by dismissing the SLPs, were not speaking orders and did not constitute binding precedents. The fact that the view taken by the Delhi High Court was not interfered with by the Honourable Supreme Court by dismissing the SLP, by itself cannot be a ground to take a different view in this case, than the one taken by the Division Bench of this Court in Lakshmi Mobile and Tharayil Medicals cases - The impugned notices and orders issued for multiple years are quashed, granting liberty to the assessing officers to issue fresh notices separately for the relevant assessment years and to complete the proceedings in accordance with law – The writ petitions are disposed of
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