Case Law Details
Aruna Slab Polishing Industries Vs Assistant Commissioner (Andhra Pradesh High Court)
Composite GST Assessment Order Invalid as It Covered Several Years, Rules Andhra Pradesh HC; Single GST Assessment for Multiple Years Violates GST Law, Says Andhra Pradesh High Court; Andhra Pradesh HC Quashes Composite GST Order Due to Multi-Year Assessment Defect; GST Assessment Must Be Separate for Each Financial Year.
The Andhra Pradesh High Court set aside a GST assessment order dated 12.12.2022 issued against the petitioner for the period from July 2017 to February 2022. The petitioner challenged the order primarily on the ground that a single composite assessment order covering multiple financial years violated Sections 73 and 74 of the GST Act, 2017. The Court noted that a Division Bench, in earlier writ petitions, had already held that a single show-cause notice or composite assessment order cannot be issued for more than one tax period when the assessment is before the due date for filing the annual return, or for more than one year once the due date for filing the annual return has been reached. Since the petitioner pressed this ground, the Court disposed of the writ petition on this issue alone while leaving other grounds open. The assessment order was set aside and the matter remanded to the authorities to initiate fresh proceedings separately for each assessment year, subject to payment of 20% of the disputed tax. Coercive recovery steps, including attachment, were also set aside.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
Heard Sri M.K. Raj Kumar, learned counsel for the petitioner and the learned Government Pleader for Commercial Tax appearing for the respondents.
2. The petitioner is a registered Company, which has been served with an order of assessment, dated 12.12.2022, passed by the 1st respondent. This order of assessment covers the period from July-2017 to February-2022.
3. The petitioner, after having raised various grounds of challenge, has pressed the ground that, a single order of assessment, issued for more than one financial year, would be violative of the provisions of Sections 73 & 74 of the GST Act, 2017 and consequently, set aside the impugned order of assessment.
4. A Division Bench of this Court, in W.P.Nos.11028 of 2025 & batch, after considering the said question, had held that, a single show-cause notice or a single composite assessment order, cannot be passed, in relation to more than one tax period of either a month if the assessment is taken up before the due date for filing of the annual return or for more than one year if the due date for filing of annual return has been reached.
5. The petitioner has raised various grounds of challenge. However, the petitioner is pressing the primary ground of the order of assessment being a composite order of assessment. In that view of the matter, the present Writ. The petitioner has raised various grounds of challenge. However, the petitioner is pressing the primary ground of the order of assessment being a composite order of assessment. In that view of the matter, the present Writ Petition is being disposed of, on this ground of challenge, leaving open the other grounds of challenge.
6. Accordingly, this Writ Petition is disposed of, setting aside the impugned order of assessment, dated 12.12.2022 and remand back to the respondents, leaving it open to the respondents to initiate fresh proceedings, for each assessment year separately, subject to payment of 20% of the disputed tax. Any payments made after the impugned order had been passed shall be adjusted against the aforesaid 20%. Coercive steps taken against the petitioner, including attachment, for recovery of the dues under this order shall also stand set aside. Needless to say, the period from the date of issuance of the impugned order of assessment till the date of receipt of this order shall be excluded for the purposes of limitation. There shall be no order as to costs.
As a sequel, pending miscellaneous applications, if any, shall stand closed.
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