Narayana Rama Bhat Vs Deputy Commissioner Of State Tax
Date: March 10, 2025
Subject Matter
Separate adjudication orders for each financial year are essential under the CGST Act
Summary
The petitioner filed a writ petition requesting the court to direct the second respondent to issue separate orders for each financial year mentioned in a show cause notice (Ext.P1). Furthermore, the petitioner sought additional time to respond to the notice for the financial years 2022-2023 and 2023-2024, as well as a chance for a personal hearing. The court heard arguments from both the petitioner’s counsel and the government pleader. It referred to the show cause notice issued under Section 74(1) of the CGST Act, 2017, concerning multiple financial years. The court had previously directed that the proceedings related to the financial year 2017-2018 should proceed, while those for other financial years needed further clarification. The petitioner pointed out that the proceedings for 2017-2018 have already been completed, and a composite order for several financial years is improper. The court agreed with this view, supported by a previous ruling, emphasizing that separate orders for each financial year are essential under the CGST Act. The petitioner had submitted a reply for the financial years 2018-2019 to 2021-2022, and the court urged the second respondent to issue appropriate separate orders for those years. For the financial years 2022-2023 and 2023-2024, the court granted the petitioner one month to file a reply to the show cause notice, after which the second respondent should proceed to issue separate orders for those years after providing an opportunity for a hearing. Ultimately, the writ petition was disposed of with these directions.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The writ petition is filed seeking a direction to the second respondent to pass separate orders for each financial year pursuant to Ext.P1 notice. Petitioner also seeks for a relief for the grant of sufficient time to file a reply to the show cause notice for the financial years 2022- 2023 and 2023-2024 and also for a grant of opportunity of personal hearing.
2. I have heard Sri. Padmanathan K.V., the learned counsel for the petitioner and and Dr. Thushara James, the learned Senior Government Pleader.
3. Ext.P1 is a show cause notice issued under Section 74(1) of the CGST Act, 2017 in relation to Multiple financial years. On 22.01.2025, this Court had directed the proceedings pursuant to Ext.P1 notice for the assessment year 2017-2018 to be proceeded with while that for the remaining years to be continued only after getting further orders from this Court.
4. The learned counsel for the petitioner submitted that the proceedings pursuant to P1 for the financial year 2017-2018 has already been completed and those for the remaining years are pending consideration.
5. 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.
6. Petitioner has already filed a reply notice for the financial years 2018- 2019 to 2021-2022, and there-fore 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.
7. Accordingly, there will be a direction to the second respondent to pass separate orders in respect of each of the financial years pursuant to Ext.P1 In respect of financial year 2022-2023 and 2023-2024 a time limit of one month from today is granted to the petitioner to file a reply and thereafter appropriate orders can be passed for those years also separately. The orders shall be passed after granting an opportunity of hearing to the petitioner.
Writ petition is disposed of as above.