X L Interiors Vs Deputy Commissioner (Intelligence) (Kerala High Court)
The Kerala High Court considered a writ petition challenging a composite show cause notice issued for financial years 2018–19 to 2022–23 under the Central Goods and Services Tax Act, 2017. The petitioner also sought a direction to mandate separate adjudication orders for each year. Earlier, the Court had permitted the tax authority to proceed only for the year 2017–18 due to the impending limitation deadline, and an order for that year was subsequently passed. For the remaining years, the issue was whether a composite order could be issued. Referring to a binding Division Bench decision, the Court held that composite orders for multiple years are not legally valid when determining tax under Sections 73 or 74 of the Act, as such an approach may prejudice determination. Accordingly, the Court directed the competent authority to pass separate orders for each financial year covered by the show cause notice, after granting an effective opportunity of hearing. The writ petition was disposed of with these directions.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
Petitioner is challenging Ext.P1 composite show cause notice issued for the years 2018-19 to 2022-23. Petitioner has also sought for a direction to pass separate orders for each of the financial years covered by the notice.
