Pramur Homes And Shelters Vs Union of India (Karnataka High Court)
Karnataka High Court held that clubbing / consolidation / bunching/ combining of multiple tax periods/financial years in a Solitary/Single/Composite Show cause notice issued under Section 73 / 74 of the CGST / KGST Act is illegal, invalid, impermissible and without jurisdiction or authority of law.
Facts- The petitioner is a registered partnership firm engaged in the business of real estate development including development of layouts and construction of residential apartments and is duly registered under the Central Goods and Services Act, 2017 w.e.f. 04.02.2020. Being aggrieved by the impugned Show cause notice dated 30.09.2025 issued by the respondents u/s. 74(1) of the CGST/KGST Act, proposing demand in a sum of Rs.11,86,86,292/- towards tax, interest and penalty, petitioner is before this Court by way of the present petition.
Conclusion- Held that clubbing / consolidation / bunching/ combining of multiple tax periods/financial years in a Solitary/Single/Composite Show cause notice issued under Section 73 / 74 of the CGST / KGST Act is illegal, invalid, impermissible and without jurisdiction or authority of law and contrary to the provisions of the CGST / KGST Act. In the instant case, a perusal of the impugned Show cause notice dated 30.09.2025 will indicate that the same encompasses and pertains to multiple tax periods/financial years, viz., from 2019-20 to 2023-24, which is impermissible in law and consequently, the impugned Show cause notice and all further proceedings pursuant thereto are also vitiated and deserve to be quashed reserving liberty to the respondents to initiate any action/proceedings in accordance with law.
