2026-VIL-1011-CAL
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SGST High Court Cases

GST - Issuance of single consolidated show cause notice covering multiple financial years under Section 74 CGST Act, 2017 - The Petitioner was issued a single show cause notice related to multiple financial years under Sections 74 and 122 of CGST Act covering multiple financial years proposing tax demand - The Petitioner challenged the consolidate SCN on the ground that the statutory scheme contemplates separate limitation periods and separate determination for each financial year and therefore a single SCN cannot be issued for multiple financial years - Whether the statutory scheme under CGST Act permits issuance of a single consolidated show cause notice covering multiple financial years when Section 74(10) prescribes limitation separately for each financial year - HELD - The statutory scheme does not permit issuance of a single consolidated show cause notice covering multiple financial years. Section 74(10) prescribes the limitation for passing the order with reference to the financial year which means each financial year has its own specific period of limitation and such period of limitation shall commence independently and would vary from year to year. By issuing single show cause notice for multiple financial years the revenue authority seeks to invoke its power for not only the relevant financial year but also for previous financial years for which no show cause notice can be issued having been barred by the period of limitation mentioned under Section 74(10) - The golden rule is that if the law states that a particular action has to be taken or step to be done in a particular manner and within a particular period of time fixed under the statute such act has to be carried out in that manner and within the fixed time only or not at all. The limitation period cannot be carried over or continue perpetually by clubbing the previous financial years with the current relevant financial year - The issuance of consolidated notice for multiple financial years is an apparent jurisdictional error on the face of the record and the existence of an alternative remedy of appeal does not bar the writ jurisdiction when there is an obvious jurisdictional defect. The consequences that demands are raised separately for separate financial years cannot cure the invalidity and illegality of the consolidated show cause notice itself - The show cause notice and the consequential adjudication order are quashed and set aside. The respondent revenue authorities shall be at liberty to proceed afresh on the issue strictly in accordance with law – The writ petition is disposed of
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