Single GST SCN for Multiple Financial Years Prima Facie Invalid: Orissa HC Grants Interim Stay [Read Order]

In a recent order, the Orissa High Court granted interim relief to Bajwa Infrastructure Pvt. Ltd. by staying a consolidated GST show cause notice that covered multiple financial years. The court found that issuing a single notice under Section 74 of the CGST Act, 2017, for five different financial years appeared to go against the structure and timelines prescribed under the law.

Bajwa Infrastructure Pvt. Ltd. filed a writ petition challenging the show cause notice dated 03.01.2025, which was issued for the financial years 2018–19 to 2022–23 under Section 74 of the CGST Act. The petitioner argued that under Section 74(10), the department must issue notices for each financial year separately within a five-year limitation period from the due date of filing the annual return. They argued that consolidating multiple tax periods into one notice was contrary to the statutory scheme.

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In support of their position, the petitioner’s counsel relied on a judgment of the Karnataka High Court in Veremax Technologie Services Ltd. v. Assistant Commissioner of Central Tax, dated 04.09.2024. In that case, the Karnataka High Court held that the consolidation of multiple assessment years in one show cause notice violated procedural norms under the CGST Act. The petitioner urged the Orissa High Court to take a similar view and sought an interim stay.

The GST department’s counsel argued that the term “tax period,” as defined under Section 2(106) of the CGST Act, does not restrict the issuance of a consolidated notice. He further argued that the petitioner had a valid GSTregistration at the time of issuance, and the notice was therefore procedurally valid.

A division bench led by Chief Justice Harish Tandon and Justice M.S. Raman stated that the petitioner had made a prima facie case by relying on a judicial precedent from a coordinate High Court. The bench held that the issue required further examination and directed the department to file a reply by 25.07.2025. The petitioner was given time to file a rejoinder thereafter.

The court ordered that the impugned show cause notice would remain stayed until the next date of hearing, which is scheduled for 05.08.2025.

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