Case Law Details
A Square Associates Vs Deputy Assistant Commissioner Sti (Andhra Pradesh High Court)
The Andhra Pradesh High Court allowed the writ petition filed by A Square Associates challenging an assessment order dated 25.10.2025 issued in Form GST DRC-07 covering the period from 01.04.2018 to 25.03.2025. The petitioner primarily contended that a single composite assessment order covering more than one financial year was contrary to Sections 73 and 74 of the GST Act, 2017.
The Court noted that a Division Bench of the same High Court, in W.P. No.11028 of 2025 and connected matters, had already examined the issue and held that a single show cause notice or a single composite assessment order cannot be issued for more than one tax period. The earlier judgment clarified that where assessment proceedings are initiated before the due date for filing annual returns, the assessment cannot cover more than one month, and where the due date for filing annual returns has been reached, the proceedings cannot cover more than one financial year.
Although the petitioner had raised several grounds challenging the assessment order, the Court observed that the petitioner pressed only the principal contention regarding the validity of the composite assessment order. In view of the settled legal position laid down by the earlier Division Bench judgment, the Court disposed of the writ petition solely on that ground without examining the remaining challenges raised by the petitioner.
Accordingly, the High Court set aside the impugned assessment order dated 25.10.2025. However, liberty was granted to the tax authorities to initiate fresh proceedings separately for each assessment year in accordance with law. The Court further directed that the period from the date of passing of the impugned order until receipt of the present order would stand excluded for the purpose of limitation. No order as to costs was passed, and pending miscellaneous applications were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
Heard Sri G. Narendra Chetty, the learned counsel appearing for the petitioner and the learned Government Pleader for Commercial Taxes appearing for the respondents.
2. The petitioner is a registered Company, which has been served with an Order of Assessment, dated 25.10.2025, in FORM GST DRC – 07, passed by the 1st This Order of Assessment covers the period from 01.04.2018 to 25.03.2025.
3. The petitioner, after having raised various grounds of challenge, has pressed the ground that, a single assessment order passed, for more than one financial year, would be violative of the provisions of Section 73 and Section 74 of the G.S.T. Act, 2017, and consequently, set aside the orders of assessment/appeals.
4. A Division Bench of this Court, in W.P.No.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 being a composite order. 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, dated 25.10.2025, leaving it open to the respondents to initiate fresh proceedings, for each assessment year separately.
7. Needless to say, the period from the date of passing of the impugned order till the date of receipt of this order shall be excluded for the purpose 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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