Case Law Details
Bhaarat Group Pvt. Ltd. Vs Assistant Commissioner ST (Andhra Pradesh High Court)
In Bhaarat Group Pvt. Ltd. Vs Assistant Commissioner ST, the Andhra Pradesh High Court considered the validity of a composite GST assessment order covering multiple financial years. The petitioner challenged the assessment order dated 05.07.2022 passed by the respondent authority for the period from 2017-2018 to 2021-2022.
The petitioner raised several grounds but primarily contended that issuance of a single assessment order for more than one financial year violated Sections 73 and 74 of the GST Act, 2017. The petitioner sought setting aside of the impugned assessment order on this ground.
The High Court referred to an earlier Division Bench decision in W.P. Nos.11028 of 2025 and batch, wherein it had been held that a single show-cause notice or a single composite assessment order cannot be issued for more than one tax period of a month where assessment is undertaken before the due date for filing of the annual return, or for more than one year where the due date for filing of annual return has already been reached.
Considering the said precedent, the Court observed that the petitioner was pressing only the ground relating to the composite nature of the assessment order. The Court therefore disposed of the writ petition on that limited ground while leaving all other grounds of challenge open.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
Heard Sri T.V. Suman, 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 05.07.2022, passed by the 1st This order of assessment covers the period from 2017-2018 to 2021-2022.
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 05.07.2022 and remand back to the respondents, leaving it open to the respondents to initiate fresh proceedings, for each assessment year separately, subject to payment of 20% of the disputed tax. Any payments made after the impugned order had been passed shall be adjusted against the aforesaid 20%. 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.
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