Eskay Trans v. Joint Director,
IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 22.08.2025
CORAM
THE HON'BLE Mr. JUSTICE KRISHNAN RAMASAMY & W.M.P.Nos. 34867 & 34868 of 2025 Eskay Trans., Rep. by its Partner Mr.S.A.K.Illumddeen Chandrika Chambers, 1A, 1st Floor, 4, Anthony Street, Royapettah, Chennai, Tamil Nadu - 600 014.
... Petitioner Vs.
1.Joint Director, Directorate General of Goods and Services Tax Intelligence, Chennai Zonal Unit, 5th & 8th Floor, Tower-II, BSNL Building, No.16, Greams Road, Chennai - 600 006.
2.Additional/Joint Commissioner of GST & Central Excise, O/o Commissioner of GST and Central Excise, Chennai South Commissionerate, No.692, MHU Complex, Anna Salai, Nandanam, Chennai - 600 035.
... Respondents Prayer:
Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari calling for the records in the file of 1/7
the First Respondent in respect of the Impugned Show Cause Notice No.003/2025 under Sections 74/74A of the Tamil Nadu Goods and Service Tax Act, 2017/Central Goods and Service Tax Act, 2017 dated 06.06.2025 having CBIC DIN:202506DS00000000B4CD and consequent Summary of Show Cause Notice in Form GST DRC-01 dated 25.06.2025 having Reference No.ZD330625062382I issued by the First Respondent for FY 2018-2025 in GSTN - 33AABFE9851G2ZG and quash the same as illegal, contrary to the provisions of the Tamil Nadu Goods and Service Tax Act, 2017/Central Goods and Service Tax Act, 2017 and in violation of principles of natural justice and fair play. For Petitioner : Mr.N.V.Balaji For Respondent 1 : Mr.Rajnish Pathiyil, Senior Panel Counsel For Respondent 2 : Mrs.Revathi Manivannan, Senior Standing Counsel
ORDER
This writ petition has been filed challenging the Impugned Show Cause Notice No.003/2025 dated 06.06.2025 issued by the first respondent.
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2. Mr.Rajnish Pathiyil, learned Senior Panel Counsel and Mrs.Revathi Manivanna, learned Senior Standing Counsel, takes notice on behalf of the respondents 1 & 2, respectively. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.
3. When this writ petition was taken up for hearing, the learned counsel for the petitioner and the learned Senior Panel Counsel appearing for the first respondent would submit that the issue involved in the present petition is with regard to the bunching of show cause notice, i.e., issuance of single show cause notice for more than one financial year.
4. Further, they would submit that the aforesaid issue has already been decided by this Court vide common order dated 21.07.2025 passed in W.P.Nos.29716 of 2024, etc., batch, wherein it has been held as follows:
"28. (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 3/7
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 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."
5. Therefore, considering the submissions made by the learned counsel for the petitioner and by following the aforesaid order dated 4/7
21.07.2025 passed in W.P.Nos.29716 of 2024, etc., batch, this Court holds that in this case, without any jurisdiction, the impugned show cause notice came to be issued for more than one financial year, viz., 20182025, which is impermissible in law and hence, the same is liable to be quashed.
6. Accordingly, this Court passes the following order: (i) The impugned show cause notice dated 06.06.2025 is quashed.
(ii) The respondents are directed to de-freeze the bank account of the petitioner immediately upon production of a copy of this order, if any.
(iii) The respondents are granted liberty to initiate separate proceedings, against the petitioner, for each financial year.
With the above directions, this writ petition is disposed of. No cost. Consequently, the connected miscellaneous petitions are also closed.
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Speaking/Non-speaking order Index : Yes / No vm To 1.Joint Director, Directorate General of Goods and Services Tax Intelligence, Chennai Zonal Unit, 5th & 8th Floor, Tower-II, BSNL Building, No.16, Greams Road, Chennai - 600 006.
2.Additional/Joint Commissioner of GST & Central Excise, O/o Commissioner of GST and Central Excise, Chennai South Commissionerate, No.692, MHU Complex, Anna Salai, Nandanam, Chennai - 600 035.
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KRISHNAN RAMASAMY.J., vm & W.M.P.Nos. 34867 & 34868 of 2025 22.08.2025 7/7