The Kerala High Court has cancelled a GST show-cause notice because it combined different assessment years in one notice, which is not allowed and is unfair.
Justice Ziyad Rahman A.A. said that sending one show cause notice (SCN) for more than one assessment year goes against accepted legal rules. The Court relied on earlier decisions, including Joint Commissioner (Intelligence & Enforcement) v. Lakshmi Mobiles Accessories and Tharayil Medicals v. Deputy Commissioner, which said that these combined notices are not valid.
The applicant is an association representing 36 self-financing pharmacy colleges in Kerala, which conducts centralised admission procedures for its member institutions. The issue has emerged after the GST Intelligence Unit issued an SCN u/s 63 of the CGST/KGST Act proposing tax assessment and penalties.
On the two reasons the association contested the notice, it was a composite notice of multiple assessment years, which is not allowable in law. The notice contemplated a pre-determined conclusion that the association was obligated for GST registration and taxation without first analysing whether its services were waived.
Subsequently, the court ruled that separate notices need to be issued for each assessment year, confirming transparency and procedural compliance.
The Court’s criticism of the language used in the notice was a significant aspect of the ruling. The notice appeared to have been issued with a predetermined conclusion that the applicant was required for GST registration and tax.
Citing the Supreme Court’s decision, the Court outlined that an SCN should propose a fair chance to respond without giving the impression that the outcome has already been decided.
The High Court determined that such prejudgment undermines the pursuit of quasi-judicial proceedings and breaches principles of natural justice.
The applicant contended that its services are covered under Entry 66(b)(iv) of Notification No. 12/2017, which exempts services of admissions and the conduct of analyses. The Court explains that the matter of GST registration and tax liability needs to be independently assessed by the competent authority, and no conclusive findings must be reached at the stage of the SCN.
In setting aside the challenged notice, the Court allowed the GST authorities to issue new, separate show cause notices for each relevant assessment year.
| Case Title | Kerala State Self-Financing B.Pharm College Management Association (Kssbcma) Versus Intelligence Officer |
| Case No. | WP(C) NO. 9108 OF 2026 |
| For Petitioner | Ammu Charles |
| For Respondent | Arun Ajay Shankar |
| Kerala High Court | Read Order |
