Haries Muhammed Vs Assistant Commissioner (IB) (Kerala High Court)
High Court of Kerala Directs Separate Proceedings for Each Financial Year in GST Case: Authorities Must Treat Each Year Independently Despite Consolidated Show Cause Notice (SCN)
Introduction: In a recent judgment passed by the High Court of Kerala in WP(C) No. 33659 of 2024, a writ petition was filed by Haries Muhammed, challenging the consolidated show cause notice issued under Section 74 of the CGST/SGST Acts for the financial years 2017-18 to 2021-22. The petitioner sought relief from being subjected to penalties and other proceedings under Section 74 on the grounds that proper returns had been filed and taxes remitted for the subsequent years, despite initial non-compliance in 2017-18. The case presents important aspects regarding the issuance of consolidated show cause notices and their validity under the GST law.
Background: The petitioner, Haries Muhammed, aged 53, had been issued a consolidated show cause notice (Exhibit P1) invoking Section 74 of the CGST/SGST Acts, spanning the tax periods from 2017-18 to 2021-22. The petitioner claimed that while there had been non-compliance in 2017-18 due to failure to file returns, for the subsequent years (2018-19 to 2021-22), the necessary returns were filed, and taxes were remitted at a rate of 5%. Despite this, the respondent authorities invoked Section 74 to impose penalties and initiate proceedings for the entire period covered in the notice.
