No bar in issuing two GST show cause notices for same period with different subject

No bar in law in issuing two GST show cause notices for the same period with a different/distinct subject matter – High Court

In a recent judgment, Allahabad High Court has held that there is no bar in law in issuing two show cause notices by GST Authorities for the same period when subject matter of both the notices is totally different from each other.

ABCAUS Case Law Citation:
4373 (2025) (01) abcaus.in HC

The Petitioner was a limited company and registered with GST Department. The Petitioner was aggrieved of the notice issued by the Assistant Commissioner Central Goods and Services.

The Petitioner submitted that it was issued show cause notice by the Assistant Commissioner, CGST in relation to the availment of Input Tax Credit (ITC) for effecting taxable as well as exempted supply as no separate record of taxable and exempted goods were allegedly maintained by the petitioner.

However, subsequent thereto, within one month impugned notice had been issued to the petitioner in relation to mis-classifying the product as in exempted goods instead of taxable at the rate of 5%.

It was contended that the GST Authorities were not justified in issuing two notices for the same period and, therefore, the issuance of subsequent notice deserved to be set aside.

The Revenue contended that admittedly, the subject matters of both the show cause notices were totally different and independent to each other and there is no bar in law in issuing more than one show cause notice for the same period on different subject matters. It was further submitted that in the show cause notice issued to the petitioner, the fact that issue pertaining to applicability of tax on supply of poultry feed supplements which were cleared by the petitioner as exempted supply, had already been taken up by the DGGI-HQ, New Delhi and, therefore, the said aspect was not being taken into consideration, was specifically noticed and in those circumstances, the issuance of impugned second notice cannot be questioned.

The Petitioner further submitted that for the same period, the petitioner would be required to appear before the different authorities, which will be cumbersome and may lead to contrary findings.

The Hon’ble High Court observed that a bare perusal of the show cause notices issued to the petitioner revealed that the subject matter of both the notices was totally different from each other and, therefore, apparently there is no bar in law in issuing two show cause notices for the same period with a different/distinct subject matter and, therefore, to that extent, no interference to the show cause notice is made out.

So far as the plea pertaining to two show cause notices being adjudicated by two different authorities was concerned, the Hon’ble High Court directed that the petitioner would be free to approach the said authorities and, in case, petitioner approaches the said authorities, the authority would take a view on the subject and examine viability of both the show cause notices being adjudicated by the same authority.

With the above observations, the petition was disposed of.

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