M/S V Arun Kumar vs. The Union Of INDIA

The petitioner has also assailed the validity of show cause notice contending that the same is one without juri iction, as the period in question relates to the tax periods, 2017-2018, 2018-2019 and 2019-2020. 3. It is submitted that a single notice cannot be issued with respect to the multiple years.

Reliance is placed on the order of this Court dated 17.12.2025 passed in W.P.No.22726/2025 in the case of M/s. Lakshmi Venkateshwara Traders MS Scrap v. The Deputy Commissioner of Central Tax and Another, wherein reference is made to the order of the Co-ordinate Bench dated 11.12.2025 passed in W.P.No.33081/2025 in the case of M/s. Pramur Homes and Shelters v. The Union of India and Others. HC-KAR NC: 2026:KHC:3120

The observations made in W.P.No.22726/2025 read as follows:-

Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of this Court in the case of M/S Pramur Homes And Shelters Vs. The Union of India and Ors. in WP No.33081/2025 dated 11.12.2025. 3. In the said judgment, this Court formulated two points for consideration, which reads as under: (i)Whether clubbing/consolidation/bunching/ combining of multiple tax periods/ financial years in a Single/Composite Show cause notice issued under Section 73 / 74 of the CGST/ KGST Act , 2017 is permissible and valid in law?

Issue No.1 was answered by this Court in favour of the petitioner by holding as under: Point No.(i) is accordingly answered in favour of the petitioner/tax payer/assessee by HC-KAR NC: 2026:KHC:3120 holding that clubbing/ consolidation/ bunching/ combining of multiple tax periods/financial years in a Solitary/Single/Composite Show cause notice issued under Section 73/74 of the CGST/KGST Act is illegal, invalid, impermissible and without juri iction or authority of law and contrary to the provisions of the CGST/KGST Act.

So also point No.2 was also answered by this Court in favour of the petitioner by quashing the impugned Show Cause Notice by holding as under: “Re: Point No.(ii);

While dealing with Point No. (i) supra, I have already come to the conclusion that clubbing / consolidation / bunching/ combining of multiple tax periods/financial years in a Solitary/Single/ Composite Show cause notice issued under Section 73 / 74 of the CGST / KGST Act is illegal, invalid, impermissible and without juri iction or authority of law and contrary to the provisions of the CGST / KGST Act. In the instant case, a perusal of the impugned Show cause notice dated 30.09.2025 will indicate that the same encompasses and pertains to multiple tax periods/financial years, viz., from 2019-20 to 2023-24, which is impermissible in law and consequently, the impugned Show cause notice and all further proceedings pursuant thereto are also vitiated and deserve to be quashed reserving liberty to the respondents to initiate any action/proceedings in accordance with law.

In the result, I pass the following: ORDER

The issue in controversy involved in the present petition also relates to clubbing/consolidation/bunching/combining of multiple tax periods/financial years/block periods in a Single/Composite Show cause notice, which has already been held to be invalid and illegal by this Court in M/S Pramur Homes And Shelters’s case referred to Supra.

Under these circumstances, the impugned show cause notices both dated 31.03.2022 at Annexures- F and F1 passed by respondent No.1 deserve to be quashed.

In the result, I pass the following: ORDER

Perused the show cause notice and the period span is from 2017-2018, 2018-2019, 2019-2020. If that were to be so, the show cause notice issued is one which is defective in light of the law laid down in M/s. Pramur Homes And Shelters v. The Union of India and Others and consequently, the Order-in-Original passed on illegal show cause notice requires to be set aside.

Accordingly, the Order in Original at Annexure-'E' dated 03.12.2024 and the show cause notice at Annexure-'B' are set aside. HC-KAR NC: 2026:KHC:3120

The respondents are however reserved liberty to initiate appropriate proceedings in accordance with law