Quantum Infratech Vs Union of India (Gauhati High Court)
Interim Relief on Consolidated SCN covering Multiple Financial Years
The Hon’ble Gauhati High Court has granted interim protection to the Petitioner, a partnership firm registered under the GST regime and engaged in the construction of residential buildings, by directing the Department that no coercive action shall be taken pursuant to a consolidated Show Cause Notice covering six financial years and the consequential Order-in-Original issued under Section 74 of the CGST Act, 2017, which was thereafter affirmed by the appellate authority vide an Order-in-Appeal.
Aggrieved by the said actions, the Petitioner approached the Hon’ble High Court contending, inter alia, that issuance of a consolidated SCN for multiple financial years is violative of Section 74 of the CGST Act. Reliance was placed on various judgments of the Hon’ble Madras High Court, Hon’ble Bombay High Court, Hon’ble Andhra Pradesh High Court and Hon’ble Karnataka High Court, wherein such consolidated notices have been held to be unsustainable in law.
Upon hearing both the parties, the Hon’ble High Court observed that the issues raised by the Petitioner merit consideration. Accordingly, notice was issued to the Respondents, and the matter was directed to be listed for admission, with the question of maintainability kept open.
