U/s 74 of the Goods and Services Tax (GST) the Orissa HC has stayed a notice issued which consolidated multiple assessment years following the decision of a single bench of the Karnataka High Court.
On 3rd January 2024, Justice Arindam Sinha and M.S. Sahoo listed the case and stayed the impugned notice till the next hearing.
Dilip Kumar Swain the applicant’s counsel Adv. Mr P.K. Harichandan furnished that the impugned is the SCN-issued u/s 74 of Odisha Goods and Services Tax Act, 2017 for the period beginning from July 2017 to March 2024.
Directing to inter alia, sub-section (10) in section 74 he furnishes that there is a specified duration for the issuance of the notice as within 5 years, inter alia from the deadline of providing the annual return for a specific Fiscal year. Additionally, his client is an unregistered dealer, provisions in section 74 are not applicable.
The council laid on the Karnataka HC decision in the matter of Veremax Technologies Services Ltd. v. Assistant Commissioner of Central Tax in which it was carried that the consolidation of multiple assessment years into a single Show Cause Notice (SCN) breaches the provisions.
Mr. Satapathy the counsel of the department carried the attention of the court on section 2(106) meaning provided to the tax period, when applied before the SCN takes no interruptions. He cited that as of the issuance date of the SCN, the applicant has received the registration.
It was cited by the court that the applicant laid on the opinion taken via the Karnataka High Court, the writ petition mandates a hearing and the department was asked to provide the opposition by 17th December 2024.
The Karnataka HC in the other matter of Bangalore Golf Club vs Assistant Commissioner of Commercial Taxes, has specified that issuing a single consolidated Show cause notice u/s 73 of the Goods and Services Tax (GST) Act for multiple assessment years is prohibited.
| Case Title | Dilip Kumar Swain vs. Deputy Director, DGGI, BBSR and Others |
| Citation | W.P.(C) No.27979 of 2024 |
| Date | 26.11.2024 |
| Petitioner by | Represented, Mr. P.K. Harichandan |
| Respondent by | Mr. T.K. Satapathy |
| Orissa High Court | Read Order |
