Case Law Details
Silpa Traders Vs Audit Officer (Kerala High Court)
Composite GST Notice for Multiple Financial Years Quashed as Unsustainable: Kerala HC
The Kerala High Court considered a writ petition challenging a consolidated GST show cause notice and Order-in-Original, along with their summaries, covering the financial years 2018-19, 2019-20 and 2020-21. The petitioner contended that a composite notice for multiple assessment years was not legally sustainable, relying on 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]. Accepting the submission, the Court quashed the consolidated notice, order and consequential summaries. It granted liberty to the respondents to issue separate notices for the relevant assessment years and directed that the period from the date of the impugned order until receipt of the certified copy of the judgment be excluded while computing limitation for fresh proceedings. All other contentions were left open.
Cases Discussed:
- Tharayil Medicals (M/s.), Thrissur v. Deputy Commissioner, Thrissur [2025 KHC OnLine 467]
- Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149]
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
This writ petition is filed by the petitioner challenging Ext.P1 consolidated show cause notice issued by the 1st respondent, along with Exts.P1(a) to P1(c), being the summaries of the notice, and Ext.P2 Order-in-Original issued by the 2nd respondent, along with Exts.P2(a) to P2(c), being the summaries of the order, pertaining to multiple financial years, namely, 2018-19, 2019-20 and 2020-21. 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 merit 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 Exts.P1 and P2 and consequential summary notices and orders, granting liberty to the respondent to issue separate notices for the relevant assessment years. However, the period from the date of the Ext.P2 order, till the date of receipt of the 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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