Facts of the Case

The petitioner, Mysore Urban Development Authority (GSTIN 29AABTT1553E1ZJ), a statutory urban development authority, challenged an Order-in-Original dated 23.12.2024 passed under Section 74(9) of the CGST/KGST Act, 2017, along with the underlying show cause notice dated 01.08.2024, covering a consolidated period from July 2017 to March 2023 — nearly six financial years combined into a single composite notice and single order (OIO No.MYS-EXCUS-000-ADC-PSM-15/2024-25).

Issues Involved

  1. Whether clubbing or consolidating multiple tax periods/financial years into a single composite show cause notice under Section 73/74 of the CGST/KGST Act is legally permissible.
  2. Whether the impugned show cause notice and consequential order spanning nearly six financial years deserve to be quashed on this ground.

Petitioner's Arguments

  • The issue was squarely covered by the Court's own recent decision in M/s Pramur Homes and Shelters v. Union of India (WP No.33081/2025), which had already held such clubbing of multiple financial years in one composite notice illegal, invalid and without jurisdiction.
  • Since the impugned notice and order similarly combined multiple financial years (July 2017 to March 2023), they were equally vitiated and liable to be quashed.

Respondent's Arguments

  • Several contentions were urged by the respondent authorities in support of the notice and order, but none distinguished the facts from the binding ratio already laid down in Pramur Homes and Shelters.

Court Order / Findings

  • The Court reproduced its findings in Pramur Homes and Shelters that clubbing, consolidation, bunching or combining of multiple tax periods/financial years in a single composite show cause notice under Section 73/74 is illegal, invalid, impermissible and without jurisdiction or authority of law, being contrary to the scheme of the CGST/KGST Act.
  • Applying this ratio directly, the Court quashed the impugned show cause notice dated 01.08.2024 and the order dated 23.12.2024, along with all further proceedings pursuant thereto.
  • Liberty was reserved to the respondents to initiate fresh, period-compliant proceedings in accordance with law, with the petitioner entitled to contest any such fresh proceedings.

Important Clarification

  • A single show cause notice or adjudication order under Section 73 or Section 74 of the CGST/KGST Act cannot validly bundle multiple distinct financial years/tax periods together — each tax period requires its own notice and order.
  • This applies equally to statutory/governmental bodies such as urban development authorities registered under GST, and notices or orders that club several financial years are without jurisdiction and liable to be quashed in entirety, though the department retains liberty to reinitiate proceedings separately for each tax period, subject to limitation.

Sections Involved

  • Section 74, CGST/KGST Act, 2017 – determination of tax not paid by reason of fraud, wilful misstatement or suppression.
  • Section 73, CGST/KGST Act, 2017 – parallel provision for non-fraud cases, also covered by the same clubbing prohibition.

Decision – In Favour of

In favour of the assessee — the show cause notice and order were quashed, with liberty to the department to reinitiate proceedings in accordance with law.

Case Details

High Court of Karnataka at Bengaluru; WRIT PETITION NO. 23902 OF 2025 (T-RES); Coram: Hon'ble Mr Justice S.R. Krishna Kumar; Date: 17.12.2025.

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