2026-VIL-640-CAL
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SGST High Court Cases

GST - Validity and Jurisdiction to issue Consolidated Show-Cause Notice for Multiple Financial Years – Appellant challenges consolidated show-cause notice issued under Section 74 of the CGST Act, 2017, which clubbed multiple financial years (2018-19 to 2023-24) into a single notice - Whether a single show-cause notice can be issued for multiple financial years under Section 74 of the CGST Act, 2017 – HELD - A single show-cause notice for multiple financial years is impermissible under Section 74 of the Act. Upon plain reading of Section 74(10), the provision prescribes a limitation period of five years from the due date for furnishing the annual return "for the financial year" to which the tax not paid or short paid relates. The legislature deliberately used the expression "for the financial year" (singular), thereby treating each financial year as a separate and independent unit with its own distinct limitation period - The language and expression employed in sub-section (10) regarding "the financial year" is of paramount significance and demonstrates that the legislature intended each assessment year to have a specific period of limitation commencing independently – A show-cause notice must be issued based on the relevant tax period determined by the filing of returns for a specific financial year, and cannot be clubbed with multiple financial years – The limitation periods cannot be carried forward or enlarged beyond statutory prescription. By issuing a consolidated notice for multiple years, the revenue authority seeks to indirectly achieve what it cannot do directly. This violates the golden rule that if a statute prescribes a particular manner and time for taking action, such action must be carried out in that manner and within the fixed time or not at all, all other modes are expressly forbidden – The consolidated show-cause notice and the consequential order are set aside and quashed as being illegal, without jurisdiction and in violation of Section 74 of the CGST Act, 2017. The authorities are permitted to proceed afresh strictly in accordance with law, by issuing separate show-cause notices for each financial year within the prescribed limitation period – The writ petition is allowed - Maintainability of Writ Petition – HELD - Although a statutory appellate remedy exists under the Act, the writ petition is maintainable because the jurisdictional error is apparent on the face of the record and no further fact-finding inquiry is required. Hence, the instant writ petition is maintainable.
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