Section 74 Bars Consolidated GST Notices Across Years | HC

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Section 74 Consolidated GST Notices

Case Details: Bhawana Steel Traders vs. Joint Director, DGGI - [2026] 185 taxmann.com 22 (Bombay)

Judiciary and Counsel Details

  • Anil L. Pansare & Nivedita P. Mehta, JJ.
  • A. J. Bhoot, Adv. for the Petitioner.
  • Mrs K. Vaidya, Adv. for the Respondent.

Facts of the Case

The petitioner assailed a consolidated SCN issued by the Joint Director, DGGI for the financial years 2018-19 to 2023-24, alleging suppression and short payment of tax. The writ was filed to question the clubbing of multiple financial years.

High Court Held

The Bombay High Court held that Section 74 did not permit the consolidation of financial years or tax periods while issuing SCN or passing the order. The fraudulent availment of ITC allegation did not create any exception to permit clubbing. Only the distinction under Section 74 concerned the five-year limitation from furnishing the annual return for each financial year. Consolidation would aggregate distinct tax periods with separate due dates and limitations and impair the year-wise statutory scheme. Accordingly, the impugned SCN and composite order were quashed with liberty to issue year-wise notices strictly in terms of Section 74.

List of Cases Reviewed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied