M C R Marketing Vs Assistant Commissioner of Central Tax (Karnataka High Court)
The petitioner challenged the Order-in-Original dated 31.12.2024 passed under Section 74 read with Sections 74(1), 50(1) and 20 of the IGST Act, 2017, along with Form GST-DRC-07 dated 16.01.2025 covering the financial years 2017-2018 to 2021-2022. The petitioner also sought to set aside the show cause notice dated 18.06.2024 and Form GST-DRC-01 dated 05.08.2024 issued for tax periods 2017-2018 to 2020-2021.
The petitioner contended that the impugned show cause notice covered multiple tax periods, namely 2018-2019 to 2021-2022, and that issuance of a single show cause notice for multiple financial years was impermissible in law. Reliance was placed on the order dated 12.2025 in W.P. No.22726/2025, which in turn referred to the judgment dated 11.12.2025 in W.P. No.33081/2025 (M/s. Pramur Homes and Shelters v. Union of India and Others).
In W.P. No.33081/2025, the Court had framed two points for consideration: (i) whether clubbing or consolidation of multiple tax periods or financial years in a single composite show cause notice under Sections 73/74 of the CGST/KGST Act was permissible; and (ii) whether such a show cause notice warranted interference. The Court answered both points in favour of the taxpayer, holding that clubbing or combining multiple tax periods or financial years in a single composite show cause notice under Sections 73/74 of the CGST/KGST Act was illegal, invalid, impermissible, and without jurisdiction or authority of law. Consequently, the impugned show cause notice in that case, covering tax periods from 2019-20 to 2023-24, and all proceedings pursuant thereto were quashed, with liberty reserved to initiate proceedings in accordance with law.
