AP HC Sets Aside GST Demand as Composite Assessment Covered Multiple Assessment Years

Akshaya Engineering And Project Services Vs State of Andhra Pradesh and Others (Andhra Pradesh High Court)

The Andhra Pradesh High Court allowed a writ petition challenging an assessment order dated 13.04.2023 that covered the period from 2017-18 to 2021-22. The petitioner primarily contended that issuing a single assessment order for more than one financial year violated Sections 73 and 74 of the GST Act, 2017. The Court referred to an earlier Division Bench decision in W.P. No. 11028 of 2025 and connected matters, which held that a single show cause notice or a single composite assessment order cannot be issued for more than one tax period or, where the due date for filing the annual return has been reached, for more than one assessment year.

Since the petitioner pressed only this ground, the Court disposed of the writ petition without examining the other challenges. The assessment order dated 13.04.2023 was set aside, and the matter was remanded to the authorities with liberty to initiate fresh proceedings separately for each assessment year. The Court also cancelled the auction of the petitioner’s immovable properties conducted by the fifth respondent. It further directed that the period from the date of the impugned assessment order until receipt of the Court’s order would be excluded for limitation purposes.

FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT

Heard Sri Bala Mohan Ranga, learned counsel for petitioner and the Learned Government Pleader for Commercial Tax for respondents.

2. The petitioner is a registered Company, which has been served with an order of assessment, dated 13.04.2023, passed by 2^nd This order of assessment covers the period from 2017-18 to 2021-22.

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 Section 73 and Section 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.No.11028 of 2025 & batch, after considering 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 assessment is taken up before due date for filing of annual return or for more than one year if due date for filing of annual return has been reached.

5. The petitioner has raised various grounds of challenge. However, 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 other grounds of challenge.

6. Accordingly, this Writ Petition is disposed of, setting aside the impugned order of assessment, dated 13.04.2023 and remand back to respondents, leaving it open to respondents to initiate fresh proceedings, for each assessment year separately. Consequently, auction of immovable properties of petitioner conducting by 5^th respondent is cancelled.

7. 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.