Santosh Supplies Vs Prakash Supplies (Madras High Court)
GST: Consolidated SCN and order across multiple years impermissible, Madras HC sets aside demand; directs issuance of period-wise notices
The Petitioner is a trader. It was served with a show cause notice proposing denial of input tax credit for a consolidated period from 2018-2019 to 2021-2022. The Petitioner replied stating that this was illegal. However, the GST officer passed order relying upon circular issued by CBIC on 15.09.2025. Hence; petition came to be filed.
The Hon’ble Madras High Court (Madurai Bench) set aside the order and allowed the petitions. It held: (i) a consolidated show cause and order is impermissible; (ii) the High Court has already ruled in R.A. and Co. case; which has not been challenged by the Revenue before the Supreme Court; (iii) therefore; reliance placed on CBIC circular is incorrect in law; (v) set aside the order and remand the matter back to issue fresh show cause notice for each period within three weeks.
Argued by Adv. Bharat Raichandani i/b UBR Legal.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
These writ petitions have been filed challenging impugned orders dated 30.12.2025 passed by the 4th respondent.
2. Since the issues involved in these Writ Petitions are one and the same, all these Writ Petitions are taken up together and disposed of by this common order. By consent, these Writ Petitions are taken up for final disposal at the admission stage itself.
