Floor Gardens Vs Assistant Commissioner (Kerala High Court)
Composite GST Show Cause Notices (SCNs) Quashed as Multiple Financial Years Cannot Be Clubbed: Kerala HC
The petitioner challenged Ext.P1 consolidated Show Cause Notice issued by the respondents covering multiple financial years, namely 2017-2018 to 2021-2022, along with Ext.P2 Summary Show Cause Notice and the consequential summary orders marked as Exts.P5 and P6.
The principal challenge was that the issuance of a single composite show cause notice for multiple assessment years was not legally sustainable. The petitioner relied upon the Division Bench decisions of the Kerala High Court in Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 249] and Tharayil Medicals v. Deputy Commissioner, Audit Division-IV [2025 VIL 356 KER], wherein such composite notices covering multiple assessment years had been held to be legally unsustainable.
After hearing the petitioner and the respondents, the Kerala High Court found merit in the petitioner’s contention, observing that the Division Bench had indeed recorded such a finding in the decisions relied upon.
In view of the principles laid down in those judgments, the Court held that interference was warranted. Accordingly, the writ petition was disposed of by quashing Ext.P1 consolidated Show Cause Notice issued for the financial years 2017-2018 to 2021-2022, Ext.P2 Summary Show Cause Notice, and the consequential summary orders contained in Exts.P5 and P6.
