Kerala High Court Quashes GST Proceedings Holding Composite Show Cause Notice for Multiple Assessment Years As Invalid

The Kerala High Court held that a composite Show Cause Notice issued under the GST laws for multiple assessment years is legally unsustainable and there should be separate proceedings initiated for each assessment year.

The petitioner is M/s. Malabar Trade Links and challenged a composite Show Cause Notice dated 22.09.2025 and the subsequent Order-in-Original dated 03.03.2026 issued by the GST authorities. The petitioner contended that issuance of a common notice for more than one assessment year was contrary to law.

The Petitioner relied on Kerala High Court decisions in Joint Commissioner (Intelligence & Enforcement) Vs. M/s. Lakshmi Mobiles Accessories and Tharayil Medicals (M/s.), Thrissur Vs. Deputy Commissioner, Thrissur to contend that issuance of a common notice for more than one assessment year was contrary to law.

The Court observed that a single Show Cause Notice covering multiple assessment years is not legally sustainable. In view of the principles observed by the court in the earlier judgments, the Court found merit in the challenge raised by the petitioner. Accordingly, the Court quashed both the Show Cause Notice and the Order-in-Original. However, liberty was granted to the respondent department to issue separate notices for the relevant assessment years and proceed in accordance with law.

The Court further directed that, while computing the period of limitation for initiating fresh proceedings, the period commencing from the date of issuance of the impugned Show Cause Notice until the receipt of the certified copy of the judgment shall stand excluded. All other contentions of the parties were left open.