M/s.S Bags Constructions Vs the Assistant… — GST and Indirect Tax | Andhra Pradesh HC (2026)

M/s.S Bags Constructions Vs the Assistant… — GST and Indirect Tax | Andhra Pradesh HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of by setting aside the impugned composite Order of Assessment, Penalty and Interest dated 28.10.2025 on the ground that a single order for multiple financial years is impermissible; respondents left open to initiate fresh proceedings for each assessment year separately; interim period excluded for limitation; other grounds of challenge left open; no order as to costs.

Issue for consideration

Whether a single composite Order of Assessment passed for more than one financial year (here, FY 2018-19 to 2023-24) is violative of Sections 73 and 74 of the G.S.T. Act, 2017 and therefore unsustainable. +1 more

Court's answer

Following the Division Bench ruling in W.P.No.11028 of 2025 & batch, a single show-cause notice or single composite assessment order cannot be passed for more than one tax period (or more than one financial year once the annual return due date is reached); accordingly, the composite impugned order dated 28.10.2025 covering FYs 2018-19 to 2023-24 is set aside, with liberty to the respondents to initiate fresh proceedings for each assessment year separately.

Ratio / Principle

The period from the date of passing of the impugned order till the date of receipt of this order shall be excluded for the purpose of limitation in any fresh proceedings.

Detailed headnote1 paragraphs

GST — Composite assessment order — Single Order of Assessment, Penalty and Interest dated 28-10-2025 (DIN DIN3728102548293) covering six financial years (2018-19 to 2023-24) under the CGST and SGST Acts, 2017, challenged under Article 226. Following the Division Bench decision in W.P.No.11028 of 2025 & batch, the High Court (per R. Raghunandan Rao, J, T.C.D. Sekhar, J concurring in the bench) held that a single show-cause notice or single composite assessment order cannot be passed for more than one tax period/month before the due date for the annual return, nor for more than one year thereafter, and that such an order is violative of Sections 73 and 74 of the G.S.T. Act, 2017. Writ petition disposed of: impugned order set aside; respondents permitted to initiate fresh proceedings for each assessment year separately; period between the impugned order and receipt of this order excluded for limitation; other grounds (including invocation of S. 74 without available ingredients and consequent partial limitation bar) left open; no costs.

APHC010055442026

[3529]

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

(Special Original Jurisdiction)

WEDNESDAY, THE ELEVENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX

PRESENT

THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

WRIT PETITION NO: 3461/2026

Between:

M/S.S BAGS CONSTRUCTIONS, D. NO. 6-1-127-7, LAKSHMI NAGAR, ANANTAPUR, ANANTAPUR DISTRICT, ANDHRA PRADESH - 515001, REP. BY ITS PARTNER, NEELAM BALAKRISHNA REDDY.

...PETITIONER

AND

THE ASSISTANT COMMISSIONER, (ST), ANANTHAPURAMU-II CIRCLE, ANANTHAPURAMU DIVISION, II FLOOR, PAR HEIGHTS, GOOTY ROAD, ANANTHAPUR, ANANTAPUR DISTRICT, ANDHRA PRADESH -515001.

THE STATE OF ANDHRA PRADESH, REP. BY THE PRINCIPAL SECRETARY TO THE GOVERNMENT, REVENUE (CT) DEPARTMENT, A. P. SECRETARIAT, VELAGAPUDI, GUNTUR DISTRICT, ANDHRA PRADESH.

THE UNION OF INDIA, REP. BY ITS SECRETARY (FINANCE), MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI - 110001.

...RESPONDENT(S):

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue an appropriate Writ, Order or Direction more particularly in the nature of MANDAMUS declaring that the impugned Order

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RRR,J & TCDS,J W.P.No.3461 of 2026

of Assessment, Penalty and Interest passed by the First Respondent vide DIN DIN3728102548293, dated 28-10-2025, for the Financial Years 2018-19, 2019-20, 2020-21, 2021-22, 2022-23 and 2023-24 under the CGST and SGST Acts, 2017, which is a single order passed for Multiple Assessment Years, which was passed pursuant to a single authorization for making inspection without any post-inspection authorization for making Assessment, which was passed by invoking S. 74 even though the ingredients for invoking the same are not available only for the purpose of availing the larger period of limitation under the said Provision as otherwise the impugned order would be partly barred by limitation if passed u/S. 73, as without jurisdiction, without authority, partly barred by limitation and even on merits not sustainable and illegal and consequently set aside the same and pass

IA NO: 1 OF 2026

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to grant stay of all further proceedings, including recovery of tax, penalty and interest pursuant to the impugned Order of Assessment, Penalty and Interest passed by the First Respondent vide DIN: DIN3728102548293, dated 28-10-2025, for the Financial Years 2018-19, 2019-20, 2020-21, 202122, 2022-23 and 2023-24 under the CGST and SGST Acts, 2017, and pass

Counsel for the Petitioner:

1.G NARENDRA CHETTY

Counsel for the Respondent(S):

1.GP FOR COMMERCIAL TAX

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RRR,J & TCDS,J W.P.No.3461 of 2026

The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao)

Heard Sri G. Narendra Chetty, learned counsel for the petitioner and the learned Government Pleader for Commercial Taxes appearing for the respondents.

The petitioner is a registered Company, which has been served with an Order of Assessment, dated 28.10.2025, passed by the 1^st respondent. This Order of Assessment covers the period from 2018-2019 to 2023-2024.

The petitioner, after having raised various grounds of challenge, has pressed the ground that, a single assessment order passed, for more than one financial year, would be violative of the provisions of Section 73 and Section 74 of the G.S.T. Act, 2017, and consequently, set aside the orders of assessment/appeals.

A Division Bench of this Court, in W.P.No.11028 of 2025 & batch, after considering the said question, had held that, a single show-cause notice or a single composite assessment order, cannot be passed, in relation to more than one tax period of either a month if the assessment is taken up before the due date for filing of the annual return or for more than one year if the due date for filing of annual return has been reached.

The petitioner has raised various grounds of challenge. However, the petitioner is pressing the primary ground of the order being a composite order.

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RRR,J & TCDS,J W.P.No.3461 of 2026

In that view of the matter, the present Writ Petition is being disposed of, on

this ground of challenge, leaving open the other grounds of challenge.

Accordingly, this Writ Petition is disposed of, setting aside the impugned order, dated 28.10.2025, leaving it open to the respondents to initiate fresh proceedings, for each assessment year separately.

Needless to say, the period from the date of passing of the impugned order till the date of receipt of this order shall be excluded for the purpose of limitation. There shall be no order as to costs.

As a sequel, pending miscellaneous applications, if any, shall stand closed.

________________________

R. RAGHUNANDAN RAO, J

_________________

T.C.D. SEKHAR, J

Date:11.02.2026 KPV

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RRR,J & TCDS,J W.P.No.3461 of 2026

98

THE HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO

AND

THE HON'BLE SRI JUSTICE T.C.D.SEKHAR

WRIT PETITION No.3461 of 2026

(per Hon’ble Sri Justice R. Raghunandan Rao)

11.02.2026

KPV