Case Law Details
Sri Sri Granites Vs Assistant Commissioner (Kerala High Court)
The writ petition challenged Ext.P1 consolidated Show Cause Notice issued by the respondents for multiple financial years, namely 2019-2020 to 2023-2024. The petitioner contended that issuance of a composite notice covering multiple assessment years was not legally sustainable, relying on the decisions of the Kerala High Court in Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories and Tharayil Medicals v. Deputy Commissioner, Audit Division – IV.
After hearing the parties, the Kerala High Court found merit in the petitioner’s submission, observing that the Division Bench had already held in the cited decisions that issuance of a composite notice for multiple assessment years was not legally sustainable.
In light of the principles laid down in those judgments, the Court interfered with Ext.P1 and quashed the consolidated Show Cause Notice issued for the financial years 2019-2020 to 2023-2024. The Court granted liberty to the respondents to issue separate notices for the relevant assessment years. It further directed that the period from the date of issuance of the composite notice until the date of receipt of the certified copy of the judgment shall be excluded while computing the period of limitation for initiating fresh proceedings. All other contentions of the parties were left open.
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 respondents for multiple financial years namely, 2019-2020 to 2023-2024. 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 v. Deputy Commissioner, Audit Division – IV [2025 VIL 356 KER]
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.
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 consolidated Show Cause Notice which was issued by the respondents for multiple financial years namely, 2019-2020 to 2023-2024, granting liberty to the respondent to issue separate notices for the relevant assessment years. However, the period from the date of issuance of composite notice till the date of receipt of 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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