Composite notices for multiple years under sections 73/74 unsustainable as each year requires separate SCN { Accountants Service Society vs. Union of India [2026] 184 taxmann.com 112 (Kerala)}
Facts:
The GST department issued one composite SCN covering several financial years, alleging tax short-payment and wrongful ITC availment under Sections 73/74. The assessee challenged the notice before the Kerala High Court, contending that each financial year is a separate tax period under GST, and therefore a separate SCN must be issued for every year.
Issue
Whether the department can issue a single composite Show Cause Notice under Section 73 of the CGST Act / Section 74 of the CGST Act covering multiple financial years, or whether separate SCNs are required for each assessment year.
Held
The Kerala High Court held that composite SCNs covering multiple financial years are not sustainable, as each financial year constitutes a separate cause of action and requires an independent show cause notice. Accordingly, the impugned composite notice was set aside, with liberty to the department to issue separate SCNs for each year in accordance with law.
