Choice Color Coats Vs Deputy Director (Kerala High Court)
Composite Show Cause Notice Challenged
Choice Color Coats challenged Ext.P1, a consolidated Show Cause Notice issued by the respondents for multiple financial years, stated as 2023-2024 to 2025-2025, along with Ext.P2, the summary of the show cause notice. The petitioner contended that issuing a composite notice covering multiple assessment years was not legally sustainable.
The petitioner relied on the decisions of the Kerala High 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], where such a finding had been entered.
Kerala High Court’s Finding
After hearing the petitioner’s counsel and the respondents’ Standing Counsel, the Court found merit in the petitioner’s submission. The Court noted that the Division Bench had entered such a finding in the decisions relied upon by the petitioner.
In view of the principles laid down in those judgments, the Court held that interference was required.
Show Cause Notice Quashed
The Kerala High Court accordingly quashed Ext.P1 consolidated Show Cause Notice and Ext.P2 summary of the show cause notice issued for multiple financial years. The respondents were granted liberty to issue separate notices for the relevant assessment years.
The Court 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 would be excluded while computing the period of limitation for initiating fresh proceedings.
All other contentions of the parties were left open.
Cases Discussed
- Tharayil Medicals v. Deputy Commissioner, Audit Division – IV (Kerala High Court), [2025 VIL 356 KER]
- Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories (Kerala High Court), [2025 KHC OnLine 149]
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, 2023-2024 to 2025-2025 and Ext.P2 summary of show cause notice. 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, 2023-2024 to 2025-2025 and Ext.P2 summary of show cause notice, 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.
