M/S.a.J.Associates Vs the Deputy Commissioner — GST and Indirect Tax | Madras HC (2025)

M/S.a.J.Associates Vs the Deputy Commissioner — GST and Indirect Tax | Madras HC (2025)

What the court decided

AI extract

Outcome

Writ petition allowed on the clubbing-of-show-cause-notices issue in line with the Court's 21.07.2025 batch order (clubbed show cause notices/orders across financial years impermissible); on all other issues the Department may issue independent show cause notices in accordance with law; petition disposed of with no costs and connected Miscellaneous Petitions (WMP Nos. 27745 and 27746 of 2025) closed.

Issue for consideration

Impermissibility of bunching/clubbing of show cause notices and orders across more than one financial year. +1 more

Court's answer

On the issue of clubbing of show cause notices, this writ petition stands allowed in the light of this Court's order dated 21.07.2025 in W.P.Nos.29716/2025 etc., batch (which quashed show cause notices impermissibly clubbed across financial years).

Ratio / Principle

With respect to all other issues, it is open to the Department to issue independent show cause notice in accordance with law; the remaining issues were not adjudicated in this judgment.

Key takeaways

With the above observations, the Writ Petition stands disposed of without costs, and the connected Miscellaneous Petitions are closed.ratio¶44

Detailed headnote1 paragraphs

High Court of Judicature at Madras (Krishnan Ramasamy, J.), order dated 21.07.2025 in W.P.No.24389 of 2025 and WMP Nos. 27745 and 27746 of 2025 — M/s. A.J. Associates (Rep. by its Proprietor, Mr. Abraham Muller) v. The Deputy Commissioner, Purasawalkam Division, Chennai North Commissionerate. Writ of Certiorari under Article 226 challenging the order dated 07.01.2025 passed by the respondent; the Prayer additionally references an impugned assessment order dated 28.03.2023 (Order No. 64/2023; C.No. GEXCOM/ADJN/GST/447/2023-CGST-DIVPUR-COMMRTE-CHENNAI(N)A; DIN No. 20230359XS0000084735). The core issue — bunching/clubbing of GST show cause notices and orders across more than one financial year — was resolved by following this Court's batch order dated 21.07.2025 in W.P.Nos.29716/2025 etc. (whose operative portion is reproduced in this judgment): the GST Act permits show cause notices only on the basis of the tax period (annual return = entire financial year; notices issued before annual returns keyed to monthly returns), and no show cause notice can validly be clubbed and issued for more than one financial year, such clubbed notices/orders being without jurisdiction and liable to be quashed. On all other issues, the Department is free to issue independent show cause notices in accordance with law. Petition disposed of; no costs; connected Miscellaneous Petitions closed.

W.P.No.24389 of 2025

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 21.07.2025

Coram

The Honourable Mr.Justice Krishnan Ramasamy

W.P.No.24389 of 2025 and WMP Nos. 27745 and 27746 OF 2025

M/s.A.J.Associates, Rep. by its Proprietor, Mr.Abraham Muller, (M/A 55 Yrs No.17/46, 2^nd Street, jaganathapuram, Chetpet, Chennai 600 031.

...Petitioner

Vs.

The Deputy Commissioner, Purasawalkam Division, Chennai North Commissionerate, No.2054-I, Anna nagar, Chennai 600 101. ...Respondent

Prayer : Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorari to call for the records on the file of the Respondent and to quash the impugned assessment order dated 28.03.2023 bearing C.no.GEXCOM/ADJN/GST/447/2023-CGST-DIVPUR-COMMRTE-CHENNAI(N)A and also bearing DIN

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as arbitrary.

W.P.No.24389 of 2025

No.20230359XS0000084735 in order no.64/2023 passed by the Respodent as arbitrary.

For Petitioner : Mr.J.Ashish

For Respondent : Mr.B.Ramanakumar Senior Standing Counsel

ORDER

Mr.Rajendran Raghavan, learned Senior Panel Counsel takes

notice on behalf of the respondent. With consent, the main Writ Petition is

taken up for final disposal at the stage of admission itself.

2. The challenge in this Writ Petition is to the order dated

07.01.2025 passed by the respondent and to quash the same.

3. The issues involved in this writ petition pertains to bunching of show cause notice/orders as well as other issues. This Court in a batch of writ petitions in W.P.Nos.29716/2025 etc., batch vide order dated 21.07.2025 passed the order, quashing the show cause notices. The operative portition of the said order is exracted hereunder:

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W.P.No.24389 of 2025

In view of the above discussion, this Court

pass the following orders:

(i) The GST Act permits only for issuance of show cause notice based on the tax period. Therefore, if the annual return is filed, the entire year would be considered as a tax period and accordingly, the show cause notice shall be issued based on the said annual returns.

(ii) If show cause notice is issued before the filing of annual returns, the same can be issued based on the filing of monthly returns;

(iii) If show cause notice is issued after the filing of annual returns or after the commencement of limitation, the said notice shall be issued based on the annual returns with regard to the relevant financial year.

(iv) No show cause notice can be clubbed and issued for more than one financial year since the same is impermissible in law.

(v) In these cases, without any jurisdiction, the

impugned show cause notices/orders came to be issued/passed for more than one financial year, which is impermissible in law and hence, the same is liable to be

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W.P.No.24389 of 2025

quashed. Accordingly, the impugned show cause notices/orders stand quashed based on the aspect of clubbing of show cause notices for more than one financial year.

As far as the issue pertains to clubbing of show causes notices is

concerned, this writ petition stands allowed in the light of the aforesaid order passed by this Court on 21.07.2025. With respect to all other issues, it is open to the Department to issue independent show cause notice in accordance with law.

With the aforesaid observations, this Writ Petition stands disposed

of. No costs. Consequently, connected Miscellaneous Petitions are closed.

21.07.2025

arr Index : yes/no Neutral Citation : yes/no

To

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W.P.No.24389 of 2025

Additional Commissioner,

Office of Commissioner of GST & Central Excise, Chennai South Commissionerate, MHU Complex, No.692, 5^th Floor, Anna Salai, Nandanam, Chennai-600035.

Krishnan Ramasamy,J.,

arr

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W.P.No.24389 of 2025

W.P.No.24389 of 2025

21.07.2025

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