The High Court cited previous rulings, which held that each financial year is treated as a separate tax period for the purpose of assessment and recovery.
Nidhi | Apr 30, 2026 |
GST: High Court Quashes SCN Issued for Multiple Years, Says Each Year Must Be Treated Separately
The Bombay High Court quashed a GST show-cause notice and order, ruling that tax authorities cannot combine multiple financial years into a single notice.
The petitioner, Gruhlaxmi Life Space Pvt. Ltd had received a notice from the Assistant Commissioner, which said that the company had suppressed taxable value and made short payments of GST. The company challenged the notice before the High Court, arguing that combining several years into a single notice is not permissible under the GST Act.
The High Court cited previous rulings, which held that each financial year is treated as a separate tax period for the purpose of assessment and recovery. So, combining multiple years into one notice goes against this ruling.
Therefore, the court upheld these previous rulings and quashed both the notice and the order. It allowed the tax authorities to issue fresh notices for each financial year.
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