Consolidated SCNs for Multiple Years Under GST Are Impermissible
The article reports a judicial ruling that the issuance of a single, composite Show Cause Notice (SCN) or assessment order covering demands for multiple distinct financial years under the Goods and Services Tax (GST) Act is legally impermissible and must be quashed.
Key Judicial Rationale
- Violation of Statutory Procedure: The court held that the GST framework mandates that each financial year constitutes a separate tax period with its own specific statutory requirements, assessment procedures, and distinct limitation periods (as defined under Sections 73 and 74 of the CGST Act).
- Need for Separate Orders: Consolidating demands for different years into a single SCN or order is a procedural illegality. Tax authorities must strictly adhere to the law by issuing separate, year-specific notices and adjudication orders to ensure correct calculation of tax, interest, and penalties, and, most importantly, to respect the time limits applicable to each year.
- Relief to Taxpayers: Quashing the consolidated SCN and subsequent order provides significant relief to the taxpayer by preventing procedural shortcuts that could circumvent statutory safeguards and time limitations. The tax authority must initiate fresh proceedings with proper, distinct notices if they wish to pursue the demands.
Source :- Judgement