Facts of the Case

The petitioner, M/s Lakshmi Ganesh Agro Fertilizers Private Limited, was served a summary of order dated 30.01.2025 in Form GST DRC-07 (Reference No. ZD370125047850G) read with an underlying Order-in-Original dated 11.01.2025, covering the tax period from July 2017 to March 2018. The petitioner challenged the order before the Andhra Pradesh High Court on multiple grounds, including non-signing of the DRC-07 digitally, non-issuance of a proper DRC-01 as mandated under Rule 142(1)(a), and issuance of a common notice/order for multiple financial years contrary to the GST Act.

Issues Involved

  1. Whether a single, composite assessment order can validly be passed covering more than one tax period once the due date for filing the annual return has passed for an earlier of those periods.

Petitioner's Arguments

  • The impugned summary order and its underlying Order-in-Original bundled together more than one financial year's tax period in a single composite assessment, contrary to Sections 73 and 74 of the GST Act.

Respondent's Arguments

  • No specific counter is separately recorded distinguishing the petitioner's reliance on the Division Bench precedent; the Government Pleader's position is reflected in the Court proceeding to apply the settled ratio.

Court Order / Findings

  • Relying on its own Division Bench ruling in W.P. No. 11028 of 2025 & batch, the Court held that a single show-cause notice or composite assessment order cannot be passed for more than one tax period — limited to one month if taken up before the annual-return due date, or one full year if the due date has passed.
  • Applying this ratio, the Court set aside the impugned summary order dated 30.01.2025, leaving it open to the department to initiate fresh proceedings separately for each assessment year, with the intervening period excluded from limitation.

Important Clarification

  • Once the due date for filing the annual return for a financial year has passed, the GST law does not permit a single composite show-cause notice or assessment order spanning that year together with another financial year — each year must be separately assessed.
  • Where such bunching is found, courts do not go into the merits of the tax demand but simply quash the composite order and permit fresh, properly segregated proceedings for each year.

Sections Involved

  • Section 73, CGST Act, 2017 and Section 74, CGST Act, 2017 – provisions under which demand notices/orders must be tax-period specific.
  • Rule 142(1)(a), CGST Rules, 2017 – mandates issuance of Form GST DRC-01 alongside the show-cause notice.
  • Form GST DRC-07 – summary of the order, required to be digitally authenticated.

Decision – In Favour of

The decision is in favour of the assessee. The composite assessment order spanning multiple financial years was quashed, with liberty to the department to proceed year-wise afresh.

Case Details

Court: High Court of Andhra Pradesh, Amaravati — Case No.: Writ Petition No. 18280/2025 — Coram: Justice R. Raghunandan Rao and Justice T.C.D. Sekhar — Date of Order: 31 December 2025.

Link to Download the Order

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