🚨 Karnataka High Court Quashes Common Show Cause Notice (SCN) for Multiple Tax Periods: "Fundamentally Flawed" 🚨 Veremax Technologie Services Limited Vs The Assistant Commissioner Of Central Tax

The Karnataka High Court has held that issuing a consolidated SCN for multiple Assessment Years (AYs) is "fundamentally flawed" and contravenes the provisions of the CGST Act.

📝 Key Takeaways: ➜A single SCN covering AYs from 2017-18 to 2020-21 was quashed. ➜The court found that grouping multiple AYs into a single notice violates Section 73(10) of the CGST Act, which mandates specific time limits for each financial year.

➜The High Court relied on the Supreme Court's precedent in Caltex (India) Ltd, emphasizing that tax actions should be completed within the designated year.

➜The Revenue's approach of clubbing tax periods into a single SCN is impermissible; separate SCNs are required for each AY under Section 73(1).

📌 What This Means: This judgment reinforces the importance of following due process in tax assessments, ensuring that each financial year is treated individually. ➜The Court, however, clarified that the Revenue is free to issue separate SCNs for each AY.