Facts of the Case

The petitioner, M/s Golden Globe Infra Private Limited, a registered taxpayer under the GST law, challenged an Assessment Order dated 04.02.2026 (DIN3704022668299) passed by the Assistant Commissioner, State Tax, covering the financial years 2020-21, 2021-22, and 2022-23 through a single consolidated assessment order.

The petitioner approached the Andhra Pradesh High Court under Article 226 of the Constitution of India, seeking quashing of the assessment order on the ground that it violated the provisions of the GST law as well as the principles of natural justice.

Issues Involved

  1. Whether a single composite assessment order can be passed under the GST law for multiple financial years.
  2. Whether such a consolidated assessment violates Sections 73 and 74 of the CGST/APGST Act, 2017.
  3. Whether the impugned assessment order deserved to be set aside and remanded for fresh proceedings.

Petitioner's Arguments

The petitioner primarily contended that:

  • The impugned assessment order covered three separate financial years through one consolidated order.
  • Sections 73 and 74 contemplate assessment proceedings tax period-wise, and therefore a composite assessment covering multiple financial years is legally impermissible.
  • Such an assessment order is contrary to the statutory framework under the GST law.
  • The order was arbitrary and violated the principles of natural justice as well as Articles 14, 21 and 300A of the Constitution of India.
  • The petitioner relied upon the earlier Division Bench judgment of the Andhra Pradesh High Court holding that composite show cause notices and assessment orders covering more than one assessment year are not sustainable under law.

Respondents' Arguments

The respondents defended the assessment order through the learned Government Pleader for Commercial Tax.

However, during the hearing, the principal issue considered by the Court was confined to the legality of issuing one composite assessment order for multiple financial years, in view of the earlier binding Division Bench judgment.

Court Order / Findings

The Andhra Pradesh High Court observed that:

  • The issue had already been settled by an earlier Division Bench decision in W.P. No.11028 of 2025 & batch.
  • The Court reiterated that:
    • A single show cause notice or
    • A single assessment order

cannot be issued for more than one tax period, particularly where separate financial years are involved after the due date of filing annual returns.

Since the impugned assessment order covered FY 2020-21 to FY 2022-23 in a consolidated manner, it was held to be contrary to the provisions governing assessments under the GST Act.

Accordingly, the Court:

  • Set aside the Assessment Order dated 04.02.2026.
  • Remanded the matter to the tax authorities.
  • Granted liberty to the department to initiate fresh assessment proceedings separately for each assessment year.
  • Directed that the period from the date of the impugned assessment order until receipt of the High Court's order shall be excluded while computing limitation for fresh proceedings.
  • Left all other grounds raised by the petitioner open for consideration in appropriate proceedings.
  • Passed no order as to costs.

Important Clarification

This judgment reiterates an important procedural safeguard under GST law:

  • Separate assessment proceedings must ordinarily be undertaken for each assessment year.
  • Composite assessment orders covering multiple financial years are not legally sustainable where the statutory scheme requires year-wise proceedings.
  • Even where an assessment order is set aside on procedural grounds, the department retains the liberty to commence fresh proceedings in accordance with law.
  • The limitation period will exclude the time during which the defective assessment order remained in force, as directed by the Court.

Sections Involved

  • Article 226 of the Constitution of India
  • Article 14 of the Constitution of India
  • Article 21 of the Constitution of India
  • Article 300A of the Constitution of India
  • Section 73 of the Central Goods and Services Tax Act, 2017
  • Section 74 of the Central Goods and Services Tax Act, 2017
  • Corresponding provisions of the Andhra Pradesh Goods and Services Tax Act, 2017

Related Case Law

  • W.P. No.11028 of 2025 & Batch (Andhra Pradesh High Court) – Composite GST Show Cause Notice and Composite Assessment Order covering multiple tax periods/assessment years held to be unsustainable.
  • Similar judicial principles have also been followed in several GST decisions emphasizing that assessment proceedings are required to be undertaken separately for each assessment year unless the statute specifically permits otherwise.

Link to Download the Order https://www.mytaxexpert.co.in/uploads/1784870297_1933compressed.pdf

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