Choice Color Coats Vs Deputy Director (Kerala High Court)
Composite Show Cause Notice Challenged
Choice Color Coats challenged Ext.P1, a consolidated Show Cause Notice issued by the respondents for multiple financial years, stated as 2023-2024 to 2025-2025, along with Ext.P2, the summary of the show cause notice. The petitioner contended that issuing a composite notice covering multiple assessment years was not legally sustainable.
The petitioner relied on the decisions of the Kerala High Court in Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149] and Tharayil Medicals v. Deputy Commissioner, Audit Division – IV [2025 VIL 356 KER], where such a finding had been entered.
Kerala High Court’s Finding
After hearing the petitioner’s counsel and the respondents’ Standing Counsel, the Court found merit in the petitioner’s submission. The Court noted that the Division Bench had entered such a finding in the decisions relied upon by the petitioner.
In view of the principles laid down in those judgments, the Court held that interference was required.
Show Cause Notice Quashed
The Kerala High Court accordingly quashed Ext.P1 consolidated Show Cause Notice and Ext.P2 summary of the show cause notice issued for multiple financial years. The respondents were granted liberty to issue separate notices for the relevant assessment years.
