2025-VIL-1306-KAR
  1. Home
  2. 2025-VIL-1306-KAR

SGST High Court Cases

GST – Validity of issuance of consolidation of Show Cause Notices across multiple Financial Years – Petitioner aggrieved by SCN alleging tax evasion and ineligible input tax credit claims over a period of multiple FYs from 2019-20 to 2023-24 - The petitioner contends that the consolidation of multiple financial years in a single Show Cause Notice is impermissible under the CGST Act - Whether the consolidation of show cause notices across multiple financial years is valid under the CGST Act – HELD - The CGST Act is structured around financial-year-specific assessment, with every stage, registration, maintenance of accounts, filing of returns, reconciliation, determination of liability, adjudication and limitation, being independent for each Financial Year. The Sections 73 and 74 of the CGST Act prescribe specific time limits for issuance of SCNs and passing of orders, which are tied to the due date of filing Annual Returns for the relevant Financial Year – Further, various High Courts have consistently held that the issuance of a consolidated SCN covering multiple Financial Years is in violation of the statutory scheme and framework of the CGST Act - The assessee is entitled to give year-wise explanations, year-wise reconciliations, and year-wise legal defences. A single notice covering five years deprives the assessee of this opportunity and violates natural justice. When the entire statutory scheme i.e., from registration to accounts, from returns to annual reconciliation, from assessment to limitation, all operates on a financial-year basis, there is no scope for issuing a consolidated SCN covering multiple unrelated financial years – The clubbing/ consolidation/ bunching/ combining of multiple tax periods/financial years in a Single/Composite Show cause notice issued under Section 73/74 of the CGST Act is illegal, invalid, impermissible and without jurisdiction or authority of law and contrary to the provisions of the Act - The impugned show cause notice and all further proceedings initiated thereunder are quashed, while granting liberty to the revenue authorities to initiate fresh proceedings in accordance with law – The writ petition is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?