Choice Estates And Constructions Private Limited Vs Union of India (Kerala High Court)
Summary: The Kerala High Court allowed the challenge by Choice Estates And Constructions Private Limited to Ext.P4 composite Show Cause Notice covering financial years 2020-2021 to 2022-2023 and Ext.P7 Order-in-Original. The petitioner contended that issuing a composite notice for multiple assessment years was legally unsustainable, relying 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]. After hearing the petitioner’s counsel and the respondents’ Standing Counsel, the Court accepted the submission, observing that the Division Bench had already entered the relevant finding in those decisions. Applying the principles laid down in the cited judgments, the Court quashed both Ext.P4 and Ext.P7 and disposed of the writ petition. However, it expressly granted the respondent liberty to issue separate notices for the relevant assessment years. For computing the limitation period for initiating fresh proceedings, the Court directed exclusion of the period from the date of Ext.P4 until the date of receipt of the certified copy of the judgment. All other contentions of the parties were left open. Consequently, the composite notice and Order-in-Original were set aside, while year-specific fresh proceedings remained permissible subject to the limitation computation directed by the Court.
Cases Discussed
- Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149] (Kerala High Court) — Relied upon by the petitioner and followed by the Court for the principle that issuance of a composite notice for multiple assessment years is legally unsustainable.
- Tharayil Medicals (M/s.), Thrissur v. Deputy Commissioner, Thrissur [2025 KHC OnLine 467] (Kerala High Court) — Relied upon by the petitioner and followed by the Court on the legal unsustainability of composite notices covering multiple assessment years.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
This writ petition is submitted by the petitioner challenging Ext.P4 composite Show Cause Notice which was issued by the respondents for multiple financial years namely, 2020-2021 to 2022-2023 and Ext.P7 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. 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.P4 and Ext.P7, granting liberty to the respondent to issue separate notices for the relevant assessment years. However, the period from the date of Ext.P4 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.
