Facts of the Case

The petitioner, owner of a building leased to an educational institution, learned through the lessee that an assessment order had been passed against her. On requesting a copy, she was served with an assessment order dated 18.05.2025 (Form GST DRC-07) covering tax periods 2017-18 to 2020-21, alleging that GST was leviable on the entire rental receipts without granting the threshold exemption under Section 22, and invoking Section 74 despite the absence of any fraud, wilful misstatement or suppression of facts. The petitioner also contended that she had received no prior notice.

Issues Involved

  1. Whether a single GST assessment order can validly cover multiple, distinct tax periods (2017-18 to 2020-21) in one composite order.
  2. Whether such an order can be set aside on this ground alone, without going into the other substantive challenges (threshold exemption under Section 22, invocation of Section 74 absent fraud).

Petitioner's Arguments

  • No notice was issued before passing the assessment order, violating the principles of natural justice.
  • The Assessment Order was not sustainable in law because it was passed for multiple tax periods (2017-18 to 2020-21) in a single order, relying on the coordinate Bench ruling in SJ Constructions v. The Assistant Commissioner and two others (W.P.No.11028 of 2025 and batch), which held that an assessment order cannot be passed for multiple tax periods.

Respondent's Arguments

  • The Government Pleader, while refuting other submissions, did not dispute the SJ Constructions judgment relied upon by the petitioner, and conceded that the impugned order was indeed passed for multiple tax periods (2017-18 to 2020-21).

Court Order / Findings

  • Without examining the merits of the threshold-exemption or Section 74 invocation arguments, the Court, following SJ Constructions, set aside the Assessment Order dated 18.05.2025 solely on the ground that it was passed covering multiple tax periods in one composite proceeding.
  • The proper officer was granted liberty to issue separate notices and proceed with assessment afresh in accordance with law, for each tax period individually.
  • The period from the date of the impugned order until receipt of the High Court's order was excluded for limitation, and the petitioner was granted liberty to raise all available objections upon issuance of fresh notices.

Important Clarification

  • A GST assessment order that clubs multiple, distinct tax periods into a single composite order is liable to be set aside on this ground alone, following the SJ Constructions line of authority in Andhra Pradesh — each tax period must be separately assessed and a separate order passed.
  • Setting aside on this technical ground does not preclude the Department from re-issuing fresh, period-wise notices and re-assessing, with the limitation period tolled for the intervening time.

Sections Involved

  • Section 22, CGST/APGST Act, 2017 — threshold exemption from registration/taxation for small suppliers.
  • Section 74, CGST/APGST Act, 2017 — determination of tax involving fraud, wilful misstatement or suppression of facts.

Decision – In Favour of

The order is in favour of the Assessee on the procedural ground of a composite multi-period order, though the Department retains liberty to reassess afresh, period-wise; the substantive exemption and Section 74 arguments were left open.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 11991/2026
Coram: Hon'ble Sri Justice Ninala Jayasurya and Hon'ble Sri Justice T.C.D. Sekhar
Date of Order: 6th July, 2026

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