Facts of the Case

  • The petitioner, M/s Tushar Products, filed a writ petition under Article 226 of the Constitution of India challenging:
    • A Show Cause Notice (SCN) dated 23rd July 2024 issued by the Deputy Commissioner, Anti‑Evasion, CGST, Delhi North.
    • An Order‑in‑Original No. 83/ADC/D.N. dated 27th January 2025 passed by the Additional Commissioner, CGST.
  • The SCN and impugned order related to input tax credit (ITC) alleged to have been wrongly availed/utilised by the petitioner, amounting to more than ₹89 Crores across multiple financial years.
  • Demand raised: ₹20,02,708/‑ (Tax + Penalty). 

Issues Involved

  1. Whether a single consolidated Show Cause Notice can be issued for multiple tax periods under the CGST Act, 2017?
  2. Whether the impugned order was maintainable or required to be challenged before the Appellate Authority under Section 107 of the CGST Act? 

Petitioner’s Arguments

  • The petitioner contended that issuing a single consolidated SCN covering more than one financial year was not permissible under the CGST statute. 

Respondent’s Arguments

  • The respondent argued that under Sections 73(3), 73(4), 74(3), and 74(4) of the CGST Act, a notice can be issued for any period, which may encompass more than one tax period, especially where fraudulent availment/utilisation of ITC is alleged. 

Court’s Findings / Order

  • The High Court held that:
    • The language of Sections 73(3), 73(4), 74(3), and 74(4) clearly permits issuing a consolidated SCN covering multiple periods, where the same grounds apply for the entire period.
    • The legislature consciously used terms such as “for any period” instead of restricting notice to individual financial years.
    • Fraudulent misuse of input tax credit often requires analyzing transactions across several years; thus a consolidated SCN is legitimate and in some cases necessary.
    • The impugned Order‑in‑Original is appealable before the Appellate Authority under Section 107 of the CGST Act.
  • Result: Petition dismissed with liberty to file an appeal by 30th September 2025 with requisite pre‑deposits; appeal shall not be dismissed on the ground of limitation. 

Important Clarifications

  • Consolidated Show Cause Notices for multiple tax periods are permitted under the GST law, especially in cases involving alleged fraudulent ITC.
  • The statutory language shows legislative intent to enable consolidated proceedings where grounds and facts are interlinked across periods.
  • The remedy lies in statutory appeal, not in writ jurisdiction, where the order is appealable.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS20082025CW55222025_124513.pdf

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