Goldstone Infra Vs Additional Commissioner (Telangana High Court)
Telangana High Court held that in cases involving allegations of fraudulent availment of ITC since transactions are spread across several years issuance of consolidated notice permissible. Writ petition is dismissed due to availability of efficacious alternative remedy of appeal u/s. 107(1) of the Act.
Facts- The writ petition is filed challenging the show cause notice dated 21.03.2025 and the order-in-original, dated 13.10.2025 covering tax periods 2018-19 to 2023-24, mainly on the following grounds: i) that no hearing was granted after the reply was filed by the petitioner which amounts to violation of principles of natural justice; ii) Rule 142(IA) of the Central Goods and Services Tax Rules, 2017 require issuance of mandatory notice in Form GST DRC-0 IA since the subject period covered pre-amended period of 2018-19 and 2019-20 which was not issued; and iii) a consolidated order for all the tax periods is not permissible. On these grounds, the impugned orders are liable to be set aside.
Conclusion- Held that in cases involving allegations of fraudulent availment of ITC, where the transactions are spread across several years, a consolidated notice may in fact be required in such cases in order to establish the illegal modality adopted by such businesses and entities. The language of the legislation, itself, does not prevent issuance of SCN or order for multiple years in a consolidated manner.
