Albatross Builders And Developers LLP Vs Assistant Commissioner of Central Tax (Karnataka High Court)
The writ petition was filed challenging a show cause notice dated 22.07.2024 and its summary dated 03.08.2024 issued under Section 74 of the Central Goods and Services Tax Act, 2017. The notices were issued on the ground that the petitioner had allegedly availed erroneous Input Tax Credit (ITC) for the period from January 2018 to August 2022. Aggrieved by these notices, the petitioner approached the Court seeking their quashing.
The petitioner, a registered entity engaged in the restaurant business, contended that the respondent authority could not have issued a single show cause notice covering multiple financial years. It was argued that separate notices should have been issued for each financial year. The petitioner relied on previous decisions of the Court where similar consolidated notices were held to be impermissible. On this basis, it was prayed that both the show cause notice and its summary be set aside.
In response, the respondent submitted that although a single show cause notice was issued for the entire period from January 2018 to August 2022, the summary of the notice provided a breakup of the alleged erroneous ITC, along with the applicable interest and penalty. It was further contended that there is no express prohibition under the law against issuing a single show cause notice covering multiple financial years. On this ground, the respondent sought dismissal of the petition.
