Veremax Technologie Services Limited Vs Assistant Commissioner of Central Tax (Karnataka High Court)
Summary: In Veremax Technologies Services Limited vs Assistant Commissioner of Central Tax, the Karnataka High Court addressed whether a single Show Cause Notice (SCN) could cover multiple tax periods. The petitioner, Veremax Technologies Services Limited, received a consolidated SCN for the tax periods 2017-18 through 2020-21. The petitioner challenged the SCN, arguing that Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, mandates separate SCNs for each financial year. The petitioner cited legal precedents, including a decision by the Hon’ble Supreme Court, which held that tax assessments for different periods must be treated independently. The Court sided with the petitioner, stating that issuing a single SCN for multiple tax periods is inconsistent with the CGST Act’s requirements. Section 73(10) of the Act specifies that tax actions must be completed within a specific year and that separate SCNs should be issued for each assessment year. The Court quashed the consolidated SCN, concluding that combining multiple tax periods into one notice violated both the statutory timeline and established legal precedents. However, the Court permitted the tax authorities to issue separate SCNs for each year in compliance with the law.
