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.