2025 (6) TMI 506 - HC - GST

Seeking a direction to the second respondent to pass separate orders for each financial year pursuant to Ext.P1 notice - grant of sufficient time to file a reply to the show cause notice - HELD THAT - A composite order for several financial years is not legally proper. Since already the proceedings for financial year 2017-2018 has culminated the second respondent has to pass appropriate orders for each of the remaining financial years mentioned in Ext.P1 notice separately. I am fortified in the above view by the decision in Joint Commissioner (Intelligence and Enforcement) v. M/s. Lakshmi Mobile Accessories 2025 SCC online KER 852 where a Division Bench of this Court observed that separate orders of determination are essential even under the CGST Act. Petitioner has already filed a reply notice for the financial years 2018- 2019 to 2021-2022 and therefore appropriate orders thereon can be passed by the second respondent in accordance with law separately for each of those financial years. As far as the financial year 2022- 2023 and 2023-2024 are concerned since petitioner has not filed a reply till date he is granted the liberty to file the reply to the show cause notice within one month from today and thereafter appropriate separate orders can be issued by the second respondent. Writ petition is disposed of.

Summary

The Kerala High Court, through Justice Bechu Kurian Thomas, addressed a writ petition seeking directions for the second respondent to issue separate orders for each financial year pursuant to Ext.P1 show cause notice issued under Section 74(1) of the CGST Act, 2017. The Court emphasized that "a composite order for several financial years is not legally proper," relying on the Division Bench ruling in Joint Commissioner (Intelligence and Enforcement) v. M/s. Lakshmi Mobile Accessories (2025 SCC online KER 852), which held that "separate orders of determination are essential even under the CGST Act."The Court noted that proceedings for 2017-2018 were completed and directed the respondent to pass distinct orders for each remaining financial year mentioned in Ext.P1. The petitioner was granted one month to file replies for the financial years 2022-2023 and 2023-2024, after which separate orders should be issued following an opportunity for personal hearing. The writ petition was disposed accordingly.