Instakart Services Private Limited Vs Additional Commissioner
Date: August 21, 2025
Subject Matter
Consolidated GST Order Covering Multiple Financial Years Quashed
Summary
The petitioner challenged an assessment order dated January 6, 2025, and a consequential rectification rejection order dated April 30, 2025. The core issue in the petition, as agreed upon by both counsels, was the "bunching" of the tax periods—the issuance of a single assessment order covering tax liabilities for more than one financial year (specifically, for the entire period from July 2017 to March 2023).
Both the petitioner and the respondent's counsel submitted that this issue is squarely covered by a previous common order of the same court dated July 21, 2025, in W.P.Nos.29716 of 2024, etc., batch. The precedent clearly held that under the GST Act, no show cause notice or order can be clubbed and issued for more than one financial year, as this is impermissible in law.
Following the binding precedent, the High Court held that the impugned order, having been passed for more than one financial year without jurisdiction, was liable to be quashed.
The court passed the following order:
The impugned assessment order dated January 6, 2025, and the consequential rectification rejection order dated April 30, 2025, are quashed.
The respondent is granted liberty to initiate separate proceedings against the petitioner for each financial year.
The writ petition was disposed of with these directions.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This writ petition has been filed challenging the impugned order dated 06.01.2025 and the consequential rectification order dated 30.04.2025 passed by the 1st respondent.
2. Mr.Sai Srujan Tayi, learned Senior Panel Counsel, takes notice on behalf of the respondent. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.
3.hen this writ petition was taken up for hearing, the learned counsel for the petitioner and the learned Senior Panel Counsel for the respondent would submit that the issue involved in the present petition is with regard to the bunching of show cause notice/orders, i.e., issuance of single show cause notice/orders for more than one financial year.
4. Further, they would submit that the aforesaid issue has already been decided by this Court vide common order dated 21.07.2025 passed in W.P.Nos.29716 of 2024, etc., batch, wherein it has been held as follows:
“28. (i) The GST Act permits only for issuance of show cause notice based on the tax period. Therefore, if the annual return is filed, the entire year would be considered as a tax period and accordingly, the show cause notice shall be issued based on the said annual returns.
ii. If show cause notice is issued before the filing of annual returns, the same can be issued based on the filing of monthly returns;
iii. If show cause notice is issued after the filing of annual returns or after the commencement of limitation, the said notice shall be issued based on the annual returns with regard to the relevant financial year.
iv. No show cause notice can be clubbed and issued for more than one financial year since the same is impermissible in law.
v. In these cases, without any jurisdiction, the impugned show cause notices/orders came to be issued/passed for more than one financial year, which is impermissible in law and hence, the same is liable to be quashed. Accordingly, the impugned show cause notices/orders stand quashed based on the aspect of clubbing of show cause notices for more than one financial year.”
5. Therefore, considering the submissions made by the learned counsel for the petitioner and by following the aforesaid order dated 21.07.2025 passed in W.P.Nos.29716 of 2024, etc., batch, this Court holds that in this case, without any jurisdiction, the impugned order came to be passed for more than one financial year, i.e., for the period from July 2017 to March 2023, which is impermissible in law and hence, the same is liable to be quashed.
6. Accordingly, this Court passes the following order:
i. The impugned assessment order dated 06.01.2025 and the consequential rectification rejection order dated 30.04.2025 are quashed.
ii. The respondent is granted liberty to initiate separate proceedings, against the petitioner, for each financial year.
7. With the above directions, this writ petition is disposed of. No cost. Consequently, the connected miscellaneous petitions are also closed.