Kanaka Reddy Seerapu Vs Union of India (Andhra Pradesh High Court)
Summary: The Andhra Pradesh High Court set aside the composite order dated 03.02.2026 passed under Section 74 of the Central Goods and Services Tax Act for the tax periods 2019-20 and 2020-21. The petitioner, a registered firm, challenged the order contending that a single composite assessment order covering multiple tax periods was impermissible under the CGST Act. The petitioner relied on the Andhra Pradesh High Court’s co-ordinate Bench decision in S.J. Constructions v. The Assistant Commissioner & Others (W.P No.11028 of 2025 & batch), dated 17.09.2025. In that decision, the Court held that a single show cause notice or composite assessment order cannot cover more than one tax period in the circumstances considered, noting the effect on statutory rights including the benefit under Section 128 of the APGST Act and the right to appeal against assessment orders under Sections 73 or 74. The learned Standing Counsel did not dispute the legal position or the factual aspect concerning the composite order. Following the cited co-ordinate Bench decision, the High Court set aside the impugned order dated 03.02.2026. The Court nevertheless granted the second respondent liberty to issue separate orders for each assessment year and proceed with the assessments concerning the tax periods in question after giving due opportunity to the petitioner and in accordance with law. The period from the date of the impugned order until the date of receipt of the High Court’s order was directed to be excluded for limitation purposes. The writ petition was accordingly disposed of, with no order as to costs.
