Back
2026 Supreme(Online)(AP) 20043
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
R Raghunandan Rao, T.C.D. Sekhar, JJ
M/s. Nikhita Enterprises – Appellant
Versus
The State of Andhra Pradesh – Respondent
WRIT PETITION NO: 11718/2026
For the Appellants/Petitioners: Prathiwada Varun Kumar
For the Respondents: GP for Commercial Tax
A single composite assessment order or show-cause notice cannot be issued for more than one tax period or financial year under the GST Act; separate proceedings must be initiated for each assessment year separately.
Headnote:(A) GST Assessment - Composite Order - Issuance of a single assessment order covering multiple financial years is violative of Section 73 and Section 74 of the GST Act, 2017 and is legally impermissible. (Para 3, 4)
(B) Procedural Propriety - Tax Periods - A single show-cause notice or composite assessment order cannot be passed for more than one tax period (monthly) if before the annual return due date, or more than one year if the due date has passed. (Para 4)
Issues: Whether a single composite assessment order issued for more than one financial year is valid under the GST Act.
| Table of Content |
|---|
| 1. introduction of the parties and the challenge against the composite gst assessment order. (Para 1 , 2) |
| 2. invalidity of single composite assessment orders for multiple tax periods under the gst act. (Para 3 , 4 , 5) |
| 3. setting aside of the impugned order and remanding the matter for separate yearly assessments. (Para 6) |
Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate writ, order, or direction, declaring the action of the Respondents in imposing interest and penalty for the tax periods 2018- 19 to 2023-24, and all consequential proceedings, including the Assessment Orders in Form GST DRC-07 dated 25.02.2026 passed by the 3rd Respondent, as arbitrary, illegal, without jurisdiction, non-est in law, and in violation of the principles of natural justice and Articles 14, 19(1)(g), and 265 of the Constitution of India, and consequently set aside the same and pass
IA NO: 1 OF 2026
Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings, including any recovery action, pursuant to the impugned Assessment Orders in Form GST DRC-07 dated 25.02.2026, passed by the 4th Respondent for the tax periods 2018-19 to 2023-24, arid pass
The Court made the following Order:
(Per Hon’ble Sri Justice R. Raghunandan Rao)
Heard Sri P.Varun Kumar, the learned counsel for the petitioner and the learned Government Pleader for Commercial Tax appearing for the respondents.
2. The petitioner is a registered person, who has been served with a Summary of the order, dated 25.02.2026 vide FORM-GST DRC-07 by the 3rd respondent. This Summary of the order covers the period from April 2018 to March 2024.
3. The petitioner, after having raised various grounds of challenge, has pressed the ground that, a single order of assessment, issued for more than one financial year, would be violative of the provisions of Section 73 and Section 74 of the GST Act, 2017 , and consequently, set aside the impugned order.
4. A Division Bench of this Court, in W.P.No.11028 of 2025 & batch, after considering the said question, had held that, a single show-cause notice or a single composite assessment order, cannot be passed, in relation to more than one tax period of either a month if the assessment is taken up before the due date for filing of the annual return or for more than one year if the due date for filing of annual return has been reached.
5. The petitioner has raised various grounds of challenge. However, the petitioner is pressing the primary ground of the Summary of the Order being a composite order of assessment. In that view of the matter, the present Writ Petition is being disposed of, on this ground of challenge, leaving open the other grounds of challenge.
6. Accordingly, this Writ Petition is disposed of, setting aside the impugned Order, dated 25.02.2026 and remand back to the respondents, leaving it open to the respondents to initiate fresh proceedings, for each assessment year separately. Needless to say, that the period from the date of issuance of the impugned order of assessment till the date of receipt of this order shall be excluded for the purpose of limitation. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed.
