Composite GST Order for Several Financial years is not Legally Proper: Kerala HC Directs to Pass Separate Order [Read Order]

In a recent case, the Kerala High Court has held that composite order under Central Goods and Service Tax (GST) for several years is not legally proper and directed the department to pass a separate order.

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Narayana Rama Bhat, the writ petitioner filed the petition seeking the direction to the second respondent to pass separate orders for each financial year pursuant to CGST 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.

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  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 the Court.

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The counsel for the petitioner submitted that the proceedings according to the order  for the financial year 2017-2018 has already been

completed and those for the remaining years are pending consideration.

A single bench of Justice Bechu Kurian Thomas viewed that “ 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.”

Petitioner has already filed a reply notice for the financial years 2018-2019 to 2021-2022, and therefore 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 20222023 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.

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The court directed the second respondent to pass separate orders in respect of each of the financial years pursuant to  notice. 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.

Sri.Padmanathan K.V., the counsel appeared  for the petitioner and Smt.Dr.Thushara James, the Senior Government Pleader appeared for the respondent.

To Read the full text of the Order CLICK HERE

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