Raghunath Enterprises Vs Additional Commissioner (Delhi High Court)
The Delhi High Court heard a writ petition filed under Article 226 of the Constitution challenging an Order-in-Original dated 27 January 2025 passed by the Additional Commissioner, Delhi North. The petition also challenged a Show Cause Notice dated 23 July 2024 issued by the Deputy Commissioner, Anti Evasion, CGST Delhi North.
The central issue in the case was whether a single show cause notice (SCN) can be issued covering multiple financial years.
The impugned order related to multiple years and involved the passing of Input Tax Credit (ITC) exceeding ₹89 crores. The demand raised against the petitioner amounted to ₹54,35,244, consisting of ₹27,17,622 as tax and an equivalent amount as penalty.
The Court noted that the impugned order was an appealable order. It referred to its earlier decision in Ambika Traders, where the legal position regarding issuance of consolidated notices for multiple financial years had been examined.
In that decision, the Court analyzed the language of Sections 73 and 74 of the CGST Act. These provisions use expressions such as “for any period” and “for such periods,” indicating that a notice can relate to a period that may extend beyond a single financial year. This contrasts with other provisions of the Act, such as Sections 73(10) and 74(10), which specifically refer to a “financial year.”
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