S.D. Freshners Ltd. Vs Union of India And 5 Others (Allahabad High Court)
The Allahabad High Court granted interim protection by staying coercive action pursuant to a composite show cause notice issued under Section 74 of the Central Goods and Services Tax Act, 2017, covering multiple assessment years in a single notice. The writ petition challenged the legality of a combined demand-cum-show cause notice spanning financial years 2017–18 to 2021–22, contending that such composite notices do not disclose year-wise or item-wise tax liability and are impermissible under the statutory scheme.
The Court noted that several connected writ petitions raising the same legal issue were pending and that coordinate benches had already entertained similar matters and granted interim protection. It referred to earlier interim orders where recovery was stayed on the ground that issuance of a composite notice for multiple years raises a serious legal question requiring consideration. The Court also took note of submissions that multiple High Courts—Kerala, Madras, Karnataka, and Bombay—have taken a view favouring assessees on the issue of composite notices, while the revenue relied on a contrary decision of the Delhi High Court.
Emphasising consistency in judicial approach and observing that the issue is primarily legal in nature, the Court held that a case for interim protection was made out. Accordingly, it directed that no coercive measures be adopted against the petitioner pursuant to the impugned show cause notice until the next date of listing. The matter was ordered to be connected and listed with a leading case for further consideration, leaving all issues open for final adjudication.
