GST
TRT-2025-
Karnataka High Court
Date:-22-02-25
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 22 January 2025
Parties: Gopi Chand Vs Deputy Commissioner of Commercial Taxes (Audit)
Facts –
- The petitioner, Gopi Chand, operating as Kunal Constructions, received an order demanding payment of dues under Section 73 of the Karnataka Goods and Services Tax Act, 2017 (KGST Act).
- The petitioner argued that this order clubbed together multiple financial years (2019-20 to 2023-24) in a single demand. They asserted that GST regulations require separate show-cause notices and orders for each individual financial year.
Issue –
- Whether single order under Section 73 of the KGST Act combine demands for multiple distinct financial years?
Order –
- The Single Bench of Hon’ble High Court observed that by clubbing more than one financial year, the petitioner was issued with show-cause notice and the order is passed under Section 73 of 2017 Act which is impermissible.
- In terms of Section 73 of KGST Act, specific action must be completed within the relevant year since the limitation is prescribed. Hence, clubbing multiple assessment years is impermissible.
- The writ petition is allowed.
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