C. Eswara Reddy And Co. Vs Joint Director (Andhra Pradesh High Court)
The Andhra Pradesh High Court heard a writ petition filed by C. Eswara Reddy And Co., a partnership firm registered under the State Goods and Services Tax Act, 2017, the Central Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017, engaged in the business of works contract services. The petitioner challenged the Order-in-Original dated 27.03.2025 and the Summary Order in Form GST DRC-07 dated 29.03.2025, which covered the composite tax periods for the financial years 2020-21 and 2021-22.
The petitioner contended that the impugned order was unsustainable in light of an earlier decision of the High Court in W.P. No.11028 of 2025 & batch, and sought setting aside of the impugned orders. During the hearing, the petitioner also submitted that a show-cause notice dated 01.09.2025 had been issued after the Order-in-Original had already been passed.
The respondents opposed the writ petition, submitting that the petitioner had an alternative statutory remedy by way of an appeal before the Appellate Tribunal and that the writ petition should not be entertained.
The High Court considered the submissions and noted that the impugned Order-in-Original and the summary order covered the composite tax periods for 2020-21 and 2021-22. The Court referred to the decision of a co-ordinate Bench in W.P. No.11028 of 2025 & batch dated 17.09.2025, which examined Sections 73 and 74 of the APGST Act. The earlier decision held that although Section 74(4) does not use the expression “such tax period,” permitting a single show-cause notice or a single composite assessment order for multiple tax periods would adversely affect a registered person’s rights, including the benefit under Section 128 of the APGST Act and the statutory right of appeal against assessment orders under Sections 73 and 74. The co-ordinate Bench concluded that a single show-cause notice or a single composite assessment order cannot be passed for more than one tax period, whether relating to multiple months or multiple financial years, depending on the stage of assessment.
