Akhila Constructions vs. Assistant Commissioner Of Central Tax
Held
The High Court, relying on its previous Division Bench judgment, ruled that composite show-cause notices covering different tax periods are impermissible under GST law. Consequently, the impugned SCNs were set aside, with liberty for the respondents to issue fresh, period-specific notices, excluding the intervening period for limitation.
Facts
Petitioners, co-owners of a property leased to an educational institution, did not pay GST on rental income. The DGGI initiated proceedings under Section 74, issuing composite show-cause notices (SCNs) for multiple tax periods (July 2017 - March 2022) for recovery of GST and penalty. The petitioners challenged these SCNs.
Key Issues
The key issues were the validity of invoking Section 74, the applicability of GST exemption for renting residential dwellings, and critically, the permissibility of issuing composite show-cause notices covering multiple tax periods.
Sections Cited
Section 74, Notification No.12/2017
AI-generated summary — verify with the full judgment below
1 RRR, J & TCDS, J W.P.Nos.15141 of 2024, 446 & 2310 of 2025
APHC010302492024
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 NOS: 15141 OF 2024, 446 & 2310 OF 2025 Between:
SMT. KILARU MAHALAKSHMI,, W/O VENKATA RATNAM, AGED ABOUT 70 YEARS, PROPERTIES, R/O PLOT NO. 56 AND 57, VIP GARDENS, MANAKULA VINAYAGAR STREET TIRUVANNAMALAI, TAMIL NADU - 606 601. 2. SMT. KILARU SUBHASHINI @ SOHA MOHAMMAD,, D/O VENKATA RATNAM, AGED ABOUT 46 YEARS. PROPERTIES, R/O A BLOCK- 001, MY HOME ABHRA, MADHAPUR, GACHIBOWLI, RANGA REDDY, T.S. - 500 032. ...PETITIONER(S) AND 1. THE UNION OF INDIA, REPRESENTED BY THE PRINCIPAL SECRETARY, DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA, 3RD FLOOR, JEEVAN DEEP BUILDING SANSAD MARG, NEW DELHI - 110 001
THE DIRECTORATE GENERAL OF GOODS AND SERVICES TAX INTELLIGENCE, DGGI CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, DEPARTMENT OF REVENUE MINISTRY OF FINANCE, GOVERNMENT OF INDIA, RK PURAM, NEW
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.