No Prohibition on Issuing Consolidated SCN for Multiple Periods Under the CGST Act | HC

Case Details: X L Interiors v. Deputy Commissioner (Intelligence), SGST Department - [2024] 169 taxmann.com 707 (Kerala)

Judiciary and Counsel Details

• Gopinath P., J.
• K.S. Hariharan Nair, G. Remadevi, Harima Hariharan, Rajath R. Nath, Dheeraj Sasidharan & Sree Haridev, Advs. for the Petitioner.
• Smt. Thushara James, Sr. GP., for the Respondent.

Facts of the Case

The assessee, a partnership firm, was issued a single show cause notice invoking the provisions of Section 74 of the CGST Act, alleging suppression of turnover, etc. in six financial years. The assessee filed writ petition and contended that separate notices should be issued for each year as sections 73 and 74 of the CGST Act do not contemplate the sending of a single consolidated show cause notice for more than one financial year.

High Court Held

The Kerala High Court noted that nothing in Section 74 prohibits the issuance of a consolidated show cause notice for multiple years. The term ‘period’ in Section 74(3) is not restricted to a single financial year. No prejudice is caused as the assessee can raise year-specific contentions in reply. However, considering the voluminous documentation of 1622 pages, the time for reply was extended by one month.

List of Cases Reviewed

• Titan Company Ltd v. The Joint Commissioner of GST and Central Excise and Another [WP No.33164 of 2023] (Madras High Court) – [Para 5] distinguished.
• M/s. Bangalore Golf Club v. Assistant Commissioner [WP No.16500 of 2024] (Karnataka HC) – [Para 4] distinguished.
• Veremax Technologie Services Ltd v. Assistant Commissioner [WP No.15810 of 2024] (Karnataka HC) – [Para 5] distinguished.