M/s LAKSHMI MOBILE ACCESSORIES v. JOINT COMMISSIONER (INTELLIGENCE & ENFORCEMENT) , KOTTAYAM

Introduction

This judgment clarifies that while a composite show cause notice covering multiple financial years may be issued under Section 74 of the CGST Act, separate adjudication orders should ordinarily be passed for each financial year. The Kerala High Court also held that where the assessee has already been granted sufficient opportunity to file a reply and attend personal hearing, apprehensions regarding denial of natural justice or cross-examination cannot justify judicial interference at the show cause notice stage.

Background of the Case

The petitioner was issued a show cause notice dated 29.07.2024 under Section 74 of the CGST Act covering multiple financial years from 2017-18 to 2023-24.