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A. K. JAYASANKARAN NAMBIAR, EASWARAN S.
Joint Commissioner (Intelligence & Enforcement) – Appellant
Versus
Lakshmi Mobile Accessories – Respondent
JUDGMENT :
A.K. Jayasankaran Nambiar, J.
The State, represented by the Joint Commissioner (Intelligence and Enforcement) and the Joint Commissioner, Tax Payer Services of the State GST Department are the appellants herein aggrieved by the judgment dated 28.01.2025 of the learned Single Judge in W.P. (C).No.2911 of 2025.
2. The brief facts necessary for disposal of this writ appeal are as follows:
The respondent herein had challenged Ext.P1 show cause notice that sought to invoke Section 74 of the Central Goods and Services Tax Act [hereinafter referred to as the “CGST Act”] to demand differential tax, interest and penalty from it on an allegation of suppression of turnover during the financial years 2017-18 to 2023-24. The main ground of challenge against Ext.P1 show cause notice in the writ petition was that inasmuch as the appellants herein had issued a single consolidated notice for six different financial years, the respondent was prejudiced in that the time limit for submitting its reply to the show cause notice in respect of each of the assessment years in question would be circumscribed by the time limit prescribed in Section 74(10) of the CGST/SGST Act for the earliest of the
Tax authorities must issue separate show cause notices for each financial year under Section 74 of the CGST Act to ensure fairness and compliance with statutory timelines.
Composite show-cause notices covering multiple financial years under CGST/KGST Act are illegal as assessments must pertain to individual years, respecting statutory limitations and ensuring natural j....
The court held that composite assessment orders for multiple financial years violate statutory provisions, emphasizing that each period must have a separate assessment to protect registered persons' ....
Proper officers must issue separate show cause notices for different assessment years under CGST/SGST Act, respecting distinct timelines and potential defenses.
Composite notices under the CGST/SGST Act for multiple assessment years are unsustainable; individual notices must be issued to uphold fairness for taxpayers.
Proceedings under Section 74 of the CGST Act cannot be initiated without evidence of fraud or misstatement if prior proceedings under Section 73 have been concluded.
The court held that a service tax demand order issued after the statutory time limit is invalid, emphasizing the necessity for timely adjudication in tax matters.
Natural justice is upheld when multiple opportunities to be heard are provided; consolidated orders across tax periods are permissible under CGST law without causing prejudice unless demonstrable har....
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