Milroc Good Earth Developers Vs Union of India (Bombay High Court)
In the matter of Milroc Good Earth Developers v. Union of India & others (Writ Petitions No. 2203 & 2312 of 2025), the Bombay High Court addressed a key legal question: whether it is permissible under the CGST Act, 2017 to issue a single show-cause notice (SCN) that “clubs” or bunches multiple financial years (tax periods) into one demand. The Court answered in the negative, holding that such practice is impermissible, and quashed the impugned notices.
Facts
The petitioner (a partnership firm) was engaged in the development of two real-estate projects (Colina and Adarsh) under agreements with landowners for residential/commercial constructions. An SCN dated 28 March 2025 was issued (received 11 April 2025) invoking Sections 74(1) and 74A of the CGST Act (with interest under Section 50 and penalties under Sections 74(1) & 122) for the period FY 2017-18 to FY 2023-24. The demand included: (i) GST on construction services, (ii) reversal of allegedly ineligible input tax credit (ITC), (iii) GST under reverse charge mechanism (RCM) on TDR services of un-booked/unsold inventory.
The petitioner argued that while the merits of the liability were contestable, the SCN itself was vitiated because it purported to deal with multiple tax periods/financial years in one consolidated notice — a practice which, according to the petitioner, the CGST Act does not permit.
