Case Details: Bhawana Steel Traders vs. Joint Director, DGGI - [2026] 185 taxmann.com 22 (Bombay)
Judiciary and Counsel Details
- Anil L. Pansare & Nivedita P. Mehta, JJ.
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A. J. Bhoot, Adv. for the Petitioner.
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Mrs K. Vaidya, Adv. for the Respondent.
Facts of the Case
The petitioner assailed a consolidated SCN issued by the Joint Director, DGGI for the financial years 2018-19 to 2023-24, alleging suppression and short payment of tax. The writ was filed to question the clubbing of multiple financial years.
High Court Held
The Bombay High Court held that Section 74 did not permit the consolidation of financial years or tax periods while issuing SCN or passing the order. The fraudulent availment of ITC allegation did not create any exception to permit clubbing. Only the distinction under Section 74 concerned the five-year limitation from furnishing the annual return for each financial year. Consolidation would aggregate distinct tax periods with separate due dates and limitations and impair the year-wise statutory scheme. Accordingly, the impugned SCN and composite order were quashed with liberty to issue year-wise notices strictly in terms of Section 74.
List of Cases Reviewed
- Milroc Good Earth Developers v. UOI [2025] 179 taxmann.com 465/112 GST 596/[2026] 104 GSTL 45 (Bombay)
- Rite Water Solutions (India) Ltd. v. Joint Commissioner, CGST & Central Excise [2026] 183 taxmann.com 627 (Bombay) (para 17)followed
List of Cases Referred to
- Milroc Good Earth Developers v. UOI [2025] 179 taxmann.com 465/112 GST 596/[2026] 104 GSTL 45 (Bombay) (para 3)
- Rite Water Solutions (India) Ltd. v. Joint Commissioner, CGST & Central Excise [2026] 183 taxmann.com 627 (Bombay) (para 5)
- Mathur Polymers v. Union of India [2025] 177 taxmann.com 860/103 GSTL 72 (Delhi) (para 9)
- Mathur Polymers v. Union of India [2026] 182 taxmann.com 215 (SC) (para 10)
- CIT v. Smt. Godavaridevi Saraf Tumsar [1978 (2) ELTJ 624 Bombay] (para 13).
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