Case Law Details
Federal Bank Limited Vs Additional Director (Kerala High Court)
The Kerala High Court considered a challenge to a consolidated show cause notice issued for six financial years from 2019-20 to 2024-25. The petitioner contended that a composite notice covering multiple assessment years was legally unsustainable in light of earlier Division Bench decisions. The Court found merit in this contention and, applying the principles laid down in those judgments, quashed the notice. The respondents were granted liberty to issue separate notices for the relevant assessment years. The period from the date of the impugned notice until receipt of the certified copy of the judgment was directed to be excluded for limitation purposes.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
This writ petition is submitted by the petitioner challenging Ext.P1 consolidated Show Cause Notice which was issued by the 1st respondent for multiple financial years namely, 2019-2020 to 2024-2025. The main challenge raised against the sustainability of the same is that, issuance of a composite notice for multiple assessment years was found to be not legally sustainable as per the decision rendered by this Court in Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149] and Tharayil Medicals (M/s.), Thrissur v. Deputy Commissioner, Thrissur [2025 KHC OnLine 467].
2. After hearing the learned counsel for the petitioner and the learned Standing Counsel for the respondents, I find merits in the said submission, in view of the fact that, such a finding was indeed entered into by the Division Bench of this Court in the decisions referred to above.
3. In such circumstances, in the light principles laid down by this Court in the above referred judgments, an interference is required. Accordingly, this writ petition is disposed of, quashing Ext.P1, granting liberty to the respondents to issue separate notices for the relevant assessment years. However, the period from the date of Ext.P1 till the date of receipt of a certified copy of the judgment shall be excluded while computing the period of limitation for initiating fresh proceeding. All the other contentions of the parties are left open.
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