Kerala High Court Quashes GST Notice Issued For Multiple Assessment Years Through Single Proceeding

On 1 June, the Kerala High Court held that the GST Department cannot issue a composite show-cause notice covering more than one assessment year, as such a notice is legally unsustainable and cannot form the basis of adjudication.

Justice Ziyad Rahman A.A. quashed the show-cause notice and the consequential Order-in-Original issued against Malabar Trade Links, while granting liberty to the GST Department to initiate fresh proceedings in accordance with law. He held:

“The Division Bench has already held that composite notices covering multiple assessment years are not legally sustainable.”

Malabar Trade Links filed the writ petition challenging a show-cause notice through which the GST authorities sought to cover the financial years 2019-20 and 2020-21 in a single proceeding, along with the Order-in-Original passed pursuant to the notice.

It contended that the Department had acted contrary to the law laid down by the Kerala High Court in earlier decisions, including Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149], by issuing a consolidated notice for multiple assessment years.

Accepting the contention, the Court observed that a Division Bench of the High Court had already held that composite notices spanning multiple assessment years are legally unsustainable.

The Bench found that the earlier judgments squarely covered the issue and held that the impugned proceedings could not stand. It, however, permitted the GST Department to issue separate show-cause notices for the relevant assessment years and proceed afresh in accordance with law.

Justice Rahman further directed the authorities to exclude, for limitation purposes in any fresh proceedings, the period between the issuance of the impugned show-cause notice and the receipt of the certified copy of the judgment.

Accordingly, the High Court quashed the show-cause notice dated 22 September 2025 and the Order-in-Original dated 3 March 2026.

For Appellant: Shri K.S. Hariharan Nair, along with Smt. G. Remadevi, Harima Hariharan, Rajath R. Nath, Dheeraj Sasidharan, Sree Haridev and Boney D. Thomas, Advocates

For Respondent: Adv. Gireesh Kumar V., Standing Counsel