HC Sets Aside GST Assessment Order Covering Multiple Financial Years, Holding It Invalid Under Sections 73 & 74 of the GST Act

The petitioner, M/s. Avika Steel Mart, a registered GST entity, was served with an assessment order dated 22.11.2025 covering the period from November 2020 to October 2023. The petitioner challenged the order before the High Court under Article 226 of the Constitution of India, primarily contending that a single composite assessment order for multiple financial years is not permissible under the GST law.

The petitioner relied on an earlier Division Bench ruling of the same Court which held that a single show-cause notice or assessment order cannot be issued for more than one tax period, whether monthly or yearly, depending on the stage of filing of returns.

Main Issue: Whether a single composite assessment order covering multiple tax periods/financial years is valid under Sections 73 and 74 of the GST Act, 2017.

HC Decided: The High Court allowed the writ petition on the limited ground that the assessment order was a composite order covering multiple tax periods, which is impermissible in law. Relying on its earlier Division Bench judgment, the Court held that separate assessment proceedings must be undertaken for each relevant tax period.

The impugned assessment order dated 22.11.2025 was set aside and the matter was remanded back to the authorities with liberty to initiate fresh proceedings separately for each assessment year. All coercive actions, including recovery proceedings and attachment, were also quashed. The Court clarified that the period between the original order and the present decision shall be excluded for limitation purposes.

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