GST
TRT-2025-
High court of Madras
Date:-21-07-25
In:-
Issue Favourable to Tax Payer ?:-
Order dated 21 July 2025
Parties: M/s. R A and Co. v. Additional Commissioner of Central Taxes
Facts -
- The petitioner, a tax assessee, was issued a single SCN covering six financial years (2017–18 to 2022–23), followed by a consolidated order confirming tax demand of ₹30.13 crore.
- The petitioner challenged the legality of clubbing different assessment years into a single SCN and order, citing violations of GST law and natural justice.
Issue -
- Whether the issuance of a single SCN and assessment order for multiple financial years under Section 74 violates the statutory mandate under the GST Act?
Order -
- The single bench of Hon’ble High court held that issuance of composite show cause notice covering multiple financial years making composite demand for multiple years without separate adjudication per year frustrate the limitation scheme and prevents the petitioner from giving year-specific rebuttals, which results in jurisdictional overreach,i.e., the proper officer acts without authority of law, rendering the order void ab initio.
- Further, the impugned order is passed in contravention of clear statutory safeguards under Section 74(10) and Section 136 of GST Act.
- Accordingly, the impugned order stands quashed based on the aspect of clubbing of impugned assessment order for more than one financial year.
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