T G S Trading Co. Vs Superintendent (Kerala High Court)
SEO Title: Kerala HC Quashes Composite GST Notices for Multiple Financial Years, Allows Fresh Year-wise Proceedings
Summary: The Kerala High Court has quashed a composite GST show cause notice and consequential order covering multiple financial years, holding that the issuance of a composite notice for multiple assessment years was not legally sustainable in view of the Division Bench decisions in Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149] and Tharayil Medicals (M/s.), Thrissur v. Deputy Commissioner, Thrissur [2025 KHC OnLine 467]. The Court granted liberty to the Revenue to issue separate notices for the relevant assessment years.
The Court further directed that the period from the date of Ext.P2 until the date of receipt of the certified copy of the judgment would be excluded while computing the period of limitation for initiating fresh proceedings. All other contentions of the parties were left open. The supplied judgment records that the petition challenged Ext.P1 composite Show Cause Notice, Ext.P1(a) summary, Ext.P2 order and Ext.P2(a) summary relating to multiple financial years.
Analysis:
The principal issue before the Kerala High Court was the legal sustainability of a composite GST proceeding covering multiple financial years. The petitioner relied upon the Division Bench rulings in Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories and Tharayil Medicals (M/s.), Thrissur v. Deputy Commissioner, Thrissur, in which the issuance of composite proceedings for multiple assessment years had been found legally unsustainable. The Court accepted the submission and held that interference was warranted.
