Shivhare Retail Pvt. Ltd. Vs Commissioner, CGST & Central Excise (Bombay High Court)
The Bombay High Court examined the validity of a show cause notice issued under Section 74 of the CGST Act covering multiple financial years from 2018–19 to 2022–23, alleging suppression of taxable value and short payment of tax. The petitioner challenged the notice on the ground that clubbing multiple financial years into a single notice is not permissible under the statutory scheme. The Court considered earlier decisions of its coordinate benches, including those rendered in cases where it was held that the GST framework mandates assessment and tax determination for each financial year as a distinct tax period. The statutory provisions prescribe separate timelines for issuance of notices and passing of orders, calculated individually for each financial year.
The Court observed that Sections 73 and 74 provide limitation periods linked to the due date of annual returns for each financial year, and consolidation of periods would merge distinct timelines and statutory requirements, which is not contemplated by the Act. It further held that even in cases involving allegations of fraudulent availment of input tax credit, there is no provision permitting consolidation of multiple financial years into a single show cause notice. The Court rejected the reliance placed by the respondents on judgments of another High Court permitting such consolidation, noting that dismissal of a challenge by the Supreme Court without detailed examination does not amount to affirmation on merits.
