The Andhra Pradesh High Court has held that a single Show Cause Notice or composite assessment order cannot cover multiple tax periods.
The bench of Justice R Raghunandan Rao and Justice T.C.D.Sekhar has observed that a single show cause notice or a single composite assessment order cannot be passed in relation to more than one tax period of either a month if the assessment is taken up before the due date for filing of the annual return or for more than one year if the due date for filing of annual return has been reached.
The petitioners/assesses are registered persons under the GST regime, are challenging the orders of assessment, on the grounds of lack of signature and lack of DIN number. Apart from this, the petitioners also challenge the impugned orders on the ground that different assessment years have been bunched together and a composite show cause notice and a composite order had been issued in relation to different tax periods, and the same is impermissible and not in accordance with the provisions of the APGST Act, 2017.
The petitioners sought a direction on the ground that a single assessment order passed, for more than one financial year, would be violative of the provisions of Section 73 and Section 74 of the GST Act, 2017, and consequently set aside the orders of assessment / appeals.
The issue raised was whether one assessment order can be passed in relation to more than one financial year had come up before various High Courts.
The High Court of Karnataka, the High Court of Madras and the High Court of Kerala have held that a single, composite assessment order, cannot be passed for more than one financial year. On the other hand the High Court of Delhi as well as the High Court of Bombay had held that there can be one composite assessment order for more than one financial year.
The High Court of Kerala in the case of Joint Commissioner (Intelligence & Enforcement) vs. Lakshmi Mobile Accessories, had independently arrived at the conclusion that a single show cause notice cannot be issued for more than one assessment / financial year.
Subsequently a Division Bench of the High Court of Kerala considered the question of whether a composite show cause notice can be issued and separate orders for each assessment year could be passed on the basis of such a composite show cause notice. The Hon’ble High Court of Kerala held that such a course of action is not permissible.
On the other hand, the High Court of Delhi in Ambika Traders Through Proprietor Gaurav Gupta vs. Additional Commissioner, Adjudication DGGSTI CGST, Delhi North (W.P.(C) 4853/2025, CM APPL. 22194/2025 & CM APPL. 22195/2025), had held that a composite show cause notice can be issued in relation to any number of assessment periods /years.
The High Court at Bombay had taken the same view on the ground that there was nothing in Section 74, which prohibited an authority from issuing a notice for any period, provided notice is given at least six months prior to the time limit specified under Section 74 (10). In the light of the conflicting decisions, a review of the relevant provisions would be necessary.
The court opined that the right of a registered person to obtain benefit under Section 128 of APGST Act as well as the right to invoke the remedy of appeal against the orders of assessment either under Section 73 or under Section 74 would get impacted if a common order is permitted to be issued in relation to more than one assessment / financial year.
The court disposed of the writ petitions setting aside the orders leaving it open for the department to initiate fresh proceedings, for each assessment year separately.
Case Details
Case Title: S J Constructions Versus The Assistant Commissioner and Others
Case No.: Writ Petition Nos:11028, 11206, 17671 & 20792 Of 2025
Date: 17/09/2025
Counsel For Petitioner: M V J K KUMAR
Counsel For Respondent: GP
