AP HC Sets Aside GST Assessment Because Single Order Covered Multiple Financial Years

Avika Steel Mart Vs Union of India (Andhra Pradesh High Court)

In this case before the Andhra Pradesh High Court, the petitioner challenged an assessment order dated 22.11.2025 passed by the tax authorities under the GST Act, 2017. The assessment order covered the period from November 2020 to October 2023.

The petitioner contended that a single assessment order covering more than one financial year was contrary to Sections 73 and 74 of the GST Act. The petitioner relied on an earlier Division Bench judgment of the High Court rendered in W.P. Nos.11028 of 2025 and connected matters, wherein it had been held that a single show-cause notice or composite assessment order cannot be issued for more than one tax period of a month where assessment is before the due date for filing annual return, or for more than one financial year where the due date for filing annual return has already been reached.

Although several grounds of challenge had been raised against the assessment order, the petitioner pressed only the ground relating to the validity of the composite assessment order. The Court therefore confined itself to deciding the matter on that issue while leaving all other grounds open.

FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT

Heard Sri Shaik Shahedaz, learned counsel for the petitioner and the learned Government Pleader for Commercial Tax appearing for the respondents.

2. The petitioner is a registered Company, which has been served with an order of assessment, dated 22.11.2025, passed by the 5^th This order of assessment covers the period from November-2020 to October 2023.

3. The petitioner, after having raised various grounds of challenge, has pressed the ground that, a single order of assessment, issued for more than one financial year, would be violative of the provisions of Sections 73 & 74 of the GST Act, 2017 and consequently, set aside the impugned order of assessment.

4. A Division Bench of this Court, in W.P.Nos.11028 of 2025 & batch, after considering the said question, had held that, a single show-cause notice or a single composite assessment order, cannot be passed, in relation to more than one tax period of either a month if the assessment is taken up before the due date for filing of the annual return or for more than one year if the due date for filing of annual return has been reached.

5. The petitioner has raised various grounds of challenge. However, the petitioner is pressing the primary ground of the order of assessment being a composite order of assessment. In that view of the matter, the present Writ Petition is being disposed of, on this ground of challenge, leaving open the other grounds of challenge.

6. Accordingly, this Writ Petition is disposed of, setting aside the impugned order of assessment, dated 22.11.2025 and remand back to the respondents, leaving it open to the respondents to initiate fresh proceedings, for each assessment year separately. Coercive steps taken against the petitioner, including attachment, for recovery of the dues under this order shall also stand set aside. Needless to say, the period from the date of issuance of the impugned order of assessment till the date of receipt of this order shall be excluded for the purposes of limitation. There shall be no order as to costs.

As a sequel, pending miscellaneous applications, if any, shall stand closed.