Assistant Commissioner of Central Tax Vs Ozone Facility Management Pvt. Ltd. (Karnataka High Court)
The Karnataka High Court allowed a writ appeal challenging the order of the Single Judge, who had quashed a common show cause notice issued under Section 74 of the CGST/KGST Act, 2017 for the tax periods 2019-20 to 2023-24 while granting liberty to initiate fresh proceedings in accordance with law.
The respondent had filed a writ petition challenging the common show cause notice dated 03.09.2025 and 10.09.2025. The Single Judge allowed the petition and quashed the notice.
The Division Bench noted that, in W.A. No.1751/2024 and connected matters, decided on 24.04.2026, the High Court had already held that consolidated or common show cause notices are permissible. The earlier judgment also directed that where matters were at the stage of submitting replies to the show cause notice, they should be remitted to the Adjudicating Authority for consideration of objections and passing of appropriate orders.
Following the earlier judgment, the High Court allowed the writ appeal, set aside the Single Judge’s order dated 17.12.2025, and remitted the matter to the Adjudicating Authority to receive the respondent’s objections and proceed in accordance with law. The respondent was granted four weeks from the date of uploading of the order to file objections to the common show cause notices.
Cases Discussed
- W.A.No.1751/2024 and connected matters (Karnataka High Court), Judgment dated 24.04.2026
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
Heard learned counsel Sri.Raghunandan.K.S., for Sri.Unnikrishnan.M., learned counsel for appellants and learned counsel Sri.Sandeep Huilgol for respondent. Perused the entire writ appeal papers.
2. The respondent was before the learned Single Judge in W.P.No.33952/2025 questioning the common show cause notice issued under Section 74 of the CGST/KGST Act, 2017 for the tax periods 2019-20 to 2023-24. Learned Single Judge under impugned order dated 17.12.2025 allowed the writ petition and quashed the common show cause notice. However, liberty was reserved to initiated appropriate proceedings in accordance with law.
3. This Court in W.A.No.1751/2024 and connected matters by judgment dated 24.04.2026 has held that the consolidated/common show cause notice is permissible and wherever the matter was at the stage of submitting reply to the show cause notice, the matter was remitted back to the Adjudicating Authority to consider the objections and to pass appropriate order.
4. Following the above judgment dated 24.04.2026 in W.A.No.1751/2024, the present appeal needs to be allowed. Hence, the following:
ORDER
a) Writ appeal is allowed.
b) Order dated 17.12.2025 in W.P.No.33952/2025 is set aside.
c) The matter is remitted back to the Adjudicating Authority to receive objections and proceed further to pass appropriate order in accordance with law.
d) The respondent herein is granted four weeks time from the day this order is uploaded on the website of this Court, to file objections to the common show cause notice dated 03.09.2025 and 10.09.2025 issued under Section 74 of the CGST/KGST Act, 2017.
