Rithwik Projects Private Limited Vs Union of India (Bombay High Court)
No Jurisdiction To Club Multiple Financial Years In Single Scn U/S 73/74 Cgst Act – Analysis of Rithwik Projects Judgement
1. Introduction
The Hon’ble Division Bench of the Bombay High Court at Aurangabad has, vide its judgment dated 09.06.2026, allowed Writ Petition No. 4061 of 2026 and quashed a consolidated Show Cause Notice covering multiple financial years, thereby laying down a seminal principle that _“one financial year, one show cause notice”_ is the mandate of Section 73/74 of the CGST Act, 2017. The judgment is a significant pronouncement on the jurisdictional limits of adjudicating authorities under GST law.
2. Facts of the Case
The Petitioner, M/s Rithwik Projects Pvt. Ltd., a company engaged in integrated construction and infrastructure development, was served with a Show Cause Notice dated 29.06.2022 by the Additional Commissioner, CGST, Aurangabad for the period 01.07.2017 to 31.08.2021. The notice proposed a demand of Rs. 2,54,40,532/- towards CGST and MGST, along with interest and penalty.
The Petitioner replied vide letter dated 13.09.2022 and attended personal hearings on 14.09.2023 and 19.12.2023, wherein it sought permission to discharge the liability in installments. Notwithstanding, Respondent No.3 passed an Order-in-Original dated 21.12.2023, confirming the entire demand and imposing an equal penalty of Rs. 2,54,40,532/- u/s 122(2)(b) of the CGST/MGST Act.
