The Calcutta High Court has quashed a single show cause notice dated 02.09.2025 issued under Sections 74 and 122 for multiple financial years, along with the consequential order-in-original involving a demand of Rs. 65,23,50,938.
Following its own ruling in State Bank of India v. The Commercial CGST and CE SLG Commissionerate [2026 SCC Online CAL 7539], the court held that a single SCN clubbing multiple financial years is impermissible as the Revenue thereby seeks to extend limitation for prior years by clubbing them with the current year.
The court rejected the Revenue’s argument that separate DRC-01 demands raised for each financial year cure the invalidity, holding that “since the show cause notice is bad in law and shall not sustain in law even if the demands raised separately for separate financial years, as a consequence to the said show cause notice, the same cannot cure the invalidity and illegality.”
The Revenue was left at liberty to proceed afresh in accordance with law with separate show cause notices.
M/s. Rathi Cement House v. The Union of India & Ors. | WPA 1055/2026 | 12 August 2026 | Calcutta HC