Fairmart Vs Deputy Commissioner (Kerala High Court)
Summary: The Kerala High Court considered a writ petition filed by M/s. Fairmart challenging Ext.P1, a composite Show Cause Notice issued by the respondents for multiple financial years, namely 2018-2019 to 2022-2023, and Ext.P2 Order-in-Original. The petitioner’s principal challenge was that issuance of a composite notice covering multiple assessment years was legally unsustainable. The petitioner relied on the Division Bench decisions 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], in which the issue of composite proceedings covering multiple assessment years had been decided against such consolidation. After hearing the petitioner’s counsel and the Standing Counsel for the respondents, the Court found merit in the submission, noting that the relevant finding had already been entered by the Division Bench in the cited decisions. Applying the principles laid down in those judgments, the Court held that interference was required. The writ petition was accordingly disposed of by quashing Ext.P1 and Ext.P2. At the same time, 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 Ext.P1 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 expressly left open. The source records that the decision was delivered on 21.08.2026 in W.P.(C) No. 29187 of 2026 before the High Court of Kerala at Ernakulam.
Cases Discussed
- Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149]
- Tharayil Medicals (M/s.), Thrissur v. Deputy Commissioner, Thrissur [2025 KHC OnLine 467]
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
This writ petition is submitted by the petitioner challenging Ext.P1 composite Show Cause Notice which was issued by the respondents for multiple financial years namely, 2018-2019 to 2022-2023 and Ext.P2 Order-in-Original. 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 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.
3. In such circumstances, in the light of the 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 and Ext.P2, granting liberty to the respondent to issue separate notices for the relevant assessment years. However, the period from the date of Ext.P1 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.
