Bangalore Golf Club Vs Assistant Commissioner of Commercial Taxes (Karnataka High Court)
Karnataka High Court held that the practice of issuing a single, consolidated show cause notice under section 73 of the CGST Act for multiple assessment years contravenes the provisions of the CGST Act and established legal precedents.
Facts- The petitioner, a Club, challenges the impugned show cause notice. The petitioner contends that these notices, issued under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, are flawed due to the improper consolidation of multiple tax periods into a single show cause notice.
The petitioner’s primary argument is that the respondent cannot issue a common show cause notice by grouping the tax periods from 2019 to 2023-24.
Conclusion- Held that section 73(10) of the CGST Act mandates a specific time limit from the due date for furnishing the annual return for the financial year to which the tax due relates. The law stipulates that particular actions must be completed within a designated year, and such actions should be executed in accordance with the law’s provisions. Thus it is concluded that the show cause notices issued by the respondent are fundamentally flawed. The practice of issuing a single, consolidated show cause notice for multiple assessment years contravenes the provisions of the CGST Act and established legal precedents.
