The Orissa High Court has stayed the notice issued under Section 74 of the Goods and Services Tax ( GST ) which consolidated multiple assessment years following the single bench’s decision of the Karnataka High Court. Justice Arindam Sinha and M.S. Sahoo listed the matter on 3rd January, 2024 and stayed the impugned notice till next hearing. Adv. Mr. P.K. Harichandan, the counsel of the petitioner, Dilip Kumar Swain  submitted that the impugned is show cause notice issued under section 74 of Odisha Goods and Services Tax Act, 2017 for period commencing from July, 2017 to March, 2024. Complete Draft Replies of GST ITC Related Notices, Click Here

Referring to, inter alia, sub-section (10) in section 74 he submits, there is prescribed period for issuance of notice as within five years, inter alia, from the due date of furnishing of annual return for a particular financial year. Furthermore, his client being an unregistered dealer, provision in section 74 does not apply to it. The counsel relied on the decision of the Karnataka High Court in the case of Veremax Technologie Services Ltd. v. Assistant Commissioner of Central Tax where it was held that consolidation of multiple assessment years into single show cause notice contravenes the provisions. However, the department’s counsel, Mr. Satapathy drew the attention of the court on Section 2(106), meaning given to ‘tax period’, when applied to the show cause notice brooks no interference.

He submitted further, as on date of issuance of the show cause notice, petitioner had obtained registration. The court stated that as the petitioner relied on the view taken by the Karnataka HC, the writ petition requires hearing and the department was directed to submit the counter by 17th December 2024. In another case of Bangalore Golf Club vs Assistant Commissioner of Commercial Taxes, the Karnataka HC hasdeclared that issuing a single consolidated Show Cause Notice ( SCN ) under Section 73 of the Goods and Services Tax ( GST ) Act for multiple assessment years is unlawful.