Vital Industries India Pvt. Ltd. Vs Assistant… — GST and Indirect Tax | Andhra Pradesh HC (2026)

Vital Industries India Pvt. Ltd. Vs Assistant… — GST and Indirect Tax | Andhra Pradesh HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of: impugned order of assessment dated 10.12.2025 set aside; matter remanded to the respondents to initiate fresh proceedings for each assessment year separately; limitation exclusion for the intervening period; no order as to costs; pending miscellaneous applications closed

Issue for consideration

Whether a single order of assessment issued for more than one financial year/tax period is violative of the provisions of Section 73 and Section 74 of the GST Act, 2017 (pressed ground of challenge; other grounds left open)

Court's answer

Following the Division Bench decision in W.P.No.11028 of 2025 & batch (that a single show-cause notice or single composite assessment order cannot cover more than one tax period/year), the Court disposed of the writ petition on the pressed ground of the composite order of assessment, leaving the other grounds of challenge open

Ratio / Principle

The writ petition is disposed of by setting aside the impugned order of assessment dated 10.12.2025 and remanding to the respondents, who remain free to initiate fresh proceedings separately for each assessment year; there is no order as to costs

Key takeaways

The period from the date of issuance of the impugned order of assessment till the date of receipt of this order shall be excluded for the purposes of limitation in any fresh proceedingsratio¶40
As a sequel, pending miscellaneous applications, if any, shall stand closedobiter¶41

Detailed headnote1 paragraphs

GST - Composite assessment - Writ petition under Article 226 of the Constitution of India by a registered company challenging Order-in-Original No. 07/2025-26(GST) dated 10.12.2025 passed by the Assistant Commissioner, Customs and Central Tax, Kurnool CGST Division, being a single order of assessment covering the period 2019-20 to 2023-24. Held, following the Division Bench decision in W.P.No.11028 of 2025 & batch, that a single show-cause notice or a single composite assessment order cannot be passed for more than one tax period (month) where assessment is taken up before the due date for filing the annual return, or for more than one year where such due date has been reached, as violative of Section 73 and Section 74 of the GST Act, 2017. Impugned order of assessment set aside; respondents permitted to initiate fresh proceedings for each assessment year separately, with the period between issuance of the impugned order and receipt of this order excluded for limitation. Other grounds of challenge left open. No order as to costs; pending miscellaneous applications closed.

APHC010129962026

[3529]

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)

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

PRESENT

THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

WRIT PETITION NO: 6895/2026

Between:

VITAL INDUSTRIES INDIA PVT LTD, REPRESENTED BY ITS MANAGER - FINANCE AND GST, C/0 SPY AGRO INDUSTRIES LIMITED, NEW INDUSTRIAL ESTATE, UDUMALPURAM, NANDYAL, KURNOOL, ANDHRA PRADESH - 518501

...PETITIONER

AND

ASSISTANT COMMISSIONER, CUSTOMS AND CENTRAL TAX, KURNOOL CGST DIVISION, OFFICE OF THE ASSISTANT COMMISSIONER OF CENTRAL TAX, NEAR CHILDRENS PARK N R PETA, KURNOOL-51800

UNION OF INDIA, , REPRESENTED BY ITS SECRETARY. MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI-11001.

...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 tomaybe pleased to issue a writ, order or direction, more particularly one in the nature of a Writ of Certiorari, to quash ORDER-IN-ORIGINAL No. 07/2025-26(GST) date 10.12.2025 passed by the Respondent under the Andhra Pradesh Goods and Services Tax Act, 2017 ( APGST ) as illegal, arbitrary, violative of principles of natural justice, and APGST Act, 2017 and

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passed with a pure revenue consideration, and with a consequential prayer to set aside the same, and pass such

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 may be pleased to dispense with filing of the certified copy of the impugned ORDER-IN-ORIGINAL No. 07/2025-26(GST) dated 10.12.2025 issued by the the Respondent and to pass such

IA NO: 2 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 maybe pleased to stay all further proceedings, including penalty and recovery proceedings consequent to ORDER-IN- ORIGINAL No. 07/2025-26(GST) dated 10.12.2025 passed by the Respondent and pass such

Counsel for the Petitioner:

1.CHIRANJEEVI TALASILA

Counsel for the Respondent(S):

1.SANTHI CHANDRA

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The Court made the following Order:

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

Heard Sri Chiranjeevi Talasila, learned counsel for the petitioner and Smt. Santhi Chandra, learned Standing Counsel appearing for the respondents.

The petitioner is a registered Company, which has been served with an order of assessment, dated 10.12.2025, passed by the 1^st respondent. This order of assessment covers the period from 2019-20 to 2023-24.

The petitioner, after having raised various grounds of challenge, has pressed the ground that, a single order of assessment, issued for more than one financial year, would be violative of the provisions of Section 73 and Section 74 of the GST Act, 2017, and consequently, set aside the impugned order of assessment.

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 of assessment being

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a composite order of assessment. 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 of assessment, dated 10.12.2025, and remand back to the respondents, leaving it open to the respondents to initiate fresh proceedings, for each assessment year separately. Needless to say, the period from the date of issuance of the impugned order of assessment till the date of receipt of this order shall be excluded for the purposes 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:11.03.2026 MJA

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RRR, J & TCDS, J W.P.No.6895 of 2026

191

THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

WRIT PETITION NO: 6895/2026

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

11.03.2026

MJA