2025 (5) TMI 1357 - HC - GST

Validity of consolidated Show Cause Notice (SCN) u/s 74 or Consolidated Adjudicating Order for different financial year - Petitioner contended that the notice under Section 74 of the Act can at some stage even get converted as a notice under Section 73 of the Act and therefore the consolidation of either the Show Cause or Final order could not be permissible. HELD THAT - Matter listed for 29th April 2025 in the Supplementary list.

Summary

The Delhi High Court, in a petition under Articles 226/227 challenging the issuance of a consolidated Show Cause Notice (SCN) spanning multiple financial years (2017-2022) under Section 74 of the Central Goods and Services Tax Act, 2017 ("the Act"), examined whether such consolidation is permissible. The petitioner contended that Section 74(10) mandates issuance of separate SCNs and orders for each financial year to uphold the scheme of Section 4 of the Act, relying on Kerala High Court (Joint Commissioner vs. Lakshmi Mobile Accessories, 2025 SCC OnLine Ker 852) and Karnataka High Court (Veremax Technologie Services Pvt. Ltd. vs. Assistant Commissioner) decisions. The petitioner argued consolidation is impermissible as SCNs under Section 74 may convert into notices under Section 73, requiring distinct proceedings.Conversely, the respondents cited decisions including Bombay High Court (M/s RioCare India Pvt. Ltd. vs. Assistant Commissioner CGST), Kerala High Court (M/s X L Interiors vs. Deputy Commissioner), Calcutta High Court (Britannia Industries Ltd. vs. Union of India, (2024) 25 Centax 430), and prior Delhi High Court orders, submitting that the Act does not expressly prohibit consolidated SCNs across financial years and such issuance is valid under Section 74.The Court reserved final adjudication, listing the matter for further hearing and treating the petition as part-heard.