Litigation Tracker: Bunching of GST Show Cause Notices (Section 73/74)

🤖 AI Summary & Direct Legal Ratio:
Under Section 73(10) of the CGST Act, 2017, statutory limitation periods are tied to the annual return due date for each specific financial year. The Madras High Court, Andhra Pradesh High Court, Kerala High Court, Karnataka High Court, and Himachal Pradesh High Court have held that issuing a single composite SCN for multiple financial years is ultra vires Section 73(10). Conversely, the Delhi High Court and Allahabad High Court have permitted consolidated notices in Section 74 fraud cases. The issue is currently before the Supreme Court of India in SLP (C) No. 4521/2025.

Executive Summary & Judicial Overview

A major legal dispute under Indian indirect tax litigation is the departmental practice of "Bunching" or consolidating multiple financial years into a single Show Cause Notice (SCN) issued under Section 73 or Section 74 of the CGST Act, 2017.

Statutory Limitation Provisions

• Section 73(10) Limitation Mandate: Prescribes a strict 3-year limitation period calculated from the due date of furnishing the annual return for the specific financial year to which the tax relates.
• Section 74(10) Limitation Mandate: Prescribes a 5-year limitation period for fraud, suppression, or wilful misstatement cases.
• Section 160(1) CGST Act: Revenue often invokes Section 160(1) to argue that composite notices are minor procedural defects saved by law.

🏛️ Comprehensive High Court & Supreme Court Judicial Scorecard

The table below details High Court stances across India and Supreme Court SLP escalation status with exact case numbers.

⚖️ Comparative Analysis Across High Court Jurisdictions

[ Pro-Taxpayer Jurisdictions ]  --->  Madras, Andhra Pradesh, Kerala, Himachal Pradesh, Karnataka (Single Bench)
[ Pro-Revenue Jurisdictions ]   --->  Delhi (Fraud/ITC Cases), Allahabad
[ Pending Larger Bench ]        --->  Bombay High Court (Full Bench Reference) & Supreme Court SLP (C) No. 4521/2025

🛡️ Recommended Action Plan for Tax Notice Defense

If your business receives a consolidated Show Cause Notice (Form DRC-01) covering multiple financial years:

1. Raise Preliminary Objections: Challenge the maintainability of the composite notice under Section 73(10).
2. Cite Favorable Precedents: Rely on Titan Company Ltd. (W.P. No. 33104/2023), S.J. Constructions (W.P. No. 4410/2025), Lakshmi Mobile (W.P.(C) No. 9123/2025), and Amit Engineers (CWP No. 1890/2026).
3. Writ Petition Strategy: Approach the jurisdictional High Court under Article 226 seeking quashing of the bunched SCN.

For expert legal defense against bunched GST notices and High Court writ filings, consult the ITRnGST Legal Team.