Kerala High Court Quashes GST Notice Issued for Multiple Financial Years

The Kerala High Court has quashed the GST notice, holding that the tax department cannot issue a single GST show cause notice covering multiple financial years.

The company, Harrison Miller Healthcare Private Ltd., challenged a show-cause notice issued by the GST department for multiple financial years from June 2018 to March 2024. Before the Kerala High Court, the petitioner company argued that issuing a composite notice for several assessment years is illegal under GST.

The company relied on several rulings, like Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories, where the court had clearly stated that separate notices must be issued for each assessment year.

Justice Ziyad Rahman A.A. agreed with the petitioner, observing that a similar issue was already resolved by the court.

Therefore, relying on its previous ruling, the high court quashed both the show cause notice and the order passed by the tax authorities.

The court also said that the authorities can issue separate notices for the relevant assessment years. The court directed that the time between the original notice and the receipt of the court’s judgment should not be counted when calculating the limitation period.