Case Law Details
Uber India Systems Private Limited Vs Deputy Commissioner of Central Tax (Andhra Pradesh High Court)
The petitioner challenged a show cause notice dated 12.06.2024 issued by the tax authorities covering tax periods from 2018-19 to 2020-21, calling upon it to explain why tax and penalties should not be levied. The primary ground raised was that a common show cause notice cannot be issued for multiple assessment or taxation periods.
The petitioner relied on the judgment of the Andhra Pradesh High Court in J Constructions vs. The Assistant Commissioner and Ors., wherein it was held that assessment proceedings for each taxation period or financial year must be initiated through separate show cause notices, and clubbing multiple periods in a single notice is impermissible.
Following the said precedent, the Court observed that the impugned notice covered more than one taxation period and therefore could not be sustained. Accordingly, the show cause notice was set aside.
However, the Court clarified that the order would not preclude the authorities from initiating appropriate action in accordance with law. The writ petition was allowed without any order as to costs, and pending miscellaneous petitions were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
The petitioner has been served with a show cause notice, dated 12.06.2024. In this show cause notice, the petitioner was called upon to show cause as to why tax amounts and penalties, mentioned in the show cause notice, should not be levied against the petitioner. The tax periods which would be covered by this show cause notice are the periods from 2018-19 to 2020-21.
2. The petitioner being aggrieved by the said notice, has challenged the same before this Court, by way of the present Writ Petition.
3. The petitioner has raised various grounds of challenge to the said show cause notice. One of the said grounds is the contention that a common show cause notice cannot be issued in relation to separate periods of assessment and separate taxation periods. Reliance is placed on a judgment of this Court in J Constructions vs. The Assistant Commissioner and Ors1.
4. In S.J Constructions, this Court has taken the view that assessment of tax and other amounts, payable under the Acts, for each taxation period or financial year should be initiated by way of separate show cause notices and a common show cause notice cannot be issued by clubbing different taxation periods.
5. As the impugned notice covered more than one taxation period, the same is set aside, following the judgment of this Court in J Constructions.
6. Accordingly, this Writ Petition is allowed, but this order shall not preclude the authorities from initiating appropriate action, in accordance with law. There shall be no order as to costs.
As a sequel, pending miscellaneous petitions, if any, shall stand closed.
Notes:
1 MANU/AP/1501/2025
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