Radiant Cash Management Services Ltd Vs Commercial Tax Officer (Madras High Court)
The Madras High Court held that there is no statutory bar under Section 73 of the CGST Act or Rule 142 of the CGST Rules against issuing multiple Show Cause Notices (SCNs) for the same tax period, provided they relate to distinct discrepancies. In this case, an earlier SCN for FY 2021-22 was quashed, and a fresh SCN was later issued addressing different discrepancies such as unreconciled turnover, exempt supplies, and credit notes, with only minor overlap. The petitioner argued that multiple proceedings for the same period were impermissible and violated natural justice. The Court rejected this contention, observing that GST laws form a self-contained code and principles like res judicata or Order II Rule 2 CPC do not apply. It clarified that only overlapping demands on identical facts are barred. Since the impugned SCN dealt with separate issues, the writ petition was dismissed with liberty to reply.
Facts:
Radiant Cash Management Services Ltd., (“the Petitioner”) filed reply dated September 19, 2025 to intimation in Form GST ASMT-10 dated August 22, 2025 issued by Respondent for tax period 2021-22. They earlier received intimation in Form GST DRC-01A dated May 6, 2025 for same period, and before the Petitioner replied to the same, the Respondent issued SCN in Form GST DRC-01 dated May 29, 2025 which was challenged by the Petitioner in WP No. 23660 of 2025 wherein this Court set aside the summary of said SCN and granted liberty to reply to DRC-01A within 3 weeks of receipt of order.
