M/S. Karthik Enterprises vs. The Union Of INDIA
Held
The High Court, relying on a previous Division Bench ruling, held that a single composite assessment order for more than one financial year is violative of the provisions of the GST Act. It set aside both the impugned assessment order and the appellate order, remanding the matter for fresh proceedings to be initiated for each assessment year separately, excluding the period of limitation from the date of the impugned order to the current order.
Facts
The petitioner received a single assessment order for multiple financial years (2019-20 to 2022-23) demanding tax. Its subsequent appeal was dismissed due to a 7-day delay. The petitioner challenged the assessment order for lack of show cause notice under Section 73 read with Rule 142 and for being a composite order covering multiple years, and the appellate order for dismissing the appeal on grounds of delay.
Key Issues
The key legal issue was whether a single composite assessment order covering multiple financial years is permissible under the GST Act, specifically in light of Sections 73 and 74.
Sections Cited
Section 73, Section 74, Rule 142
AI-generated summary — verify with the full judgment below
1 RRR, J & TCDS, J W.P.No.18584 of 2024
APHC010365682024
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] TUESDAY,THE SIXTEENTH DAY OF JUNE TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 18584/2024 Between:
M/S. KARTHIK ENTERPRISES, REGISTERED OFFICE DOOR NO. 13-148, SRI DHANALAKSHMI FLOOR MILL, VAYTAPALAM, SAMARLAKOTA 533440
WITH GSTIN 37AWUPK8138M1ZJ REPRESENTED BY ITS AUTHORIZED SIGNATORY KOTTHALA KISHORE KUMAR S/O KOTTHALASURIBABU, AGED ABOUT 38 YEARS, R/O 14-203/4/F10, MAHESWARI TOWERS, OPPOSITE POWER STATION, NUNNA, ADIVINEKKALAM NTR DISTRICT, ANDHRA PRADESH.
...PETITIONER AND 1. THE UNION OF INDIA, THROUGH THE SECRETARY, DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVT, OF INDIA NORTH BLOCK, NEW DELHI-110001. 2. THE STATE OF ANDHRA PRADESH, THROUGH THE PRINCIPAL SECRETARY, FINANCE (COMMERCIAL TAXES) DEPARTMENT A.P. SECRETARIAT, VELGAPUDI - GUNTUR DISTRICT.
THE ADDITIONAL COMMISSIONER ST APPELLATE AUTHORITY, VIJAYAWADA NTR DISTRICT
THE DEPUTY ASSISTANT COMMISSIONER STATE TAX ST, PEDDAPU
The judgment continues below.
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