Madras High Court
WP/40387/2026 of Hotel Radha Private Ltd Vs Union of India on 7 October 2026
WP No. 40387 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07-10-2026
CORAM
THE HON'BLE MR JUSTICE KRISHNAN RAMASAMY
WP No. 40387 of 2026
CNR:{HCMA012385062026}
AND WMP NO. 45436 OF 2026
Hotel Radha Private Ltd,
Rep.by its Director,Mr.A.R.Ravichandran, Registered Office-at No.16 Bishop Wallace Avenue, East CIT Colony, Mylapore, Chennai-600 004
Principal Place of business
at No.1,Five Rathas Road,
Mamallapuram,Kancheepuram,
Tamil Nadu-60304
..Petitioner(s)
Vs
1. Union of India,
rep. by its Secretary,
Ministry of Finance,Department of Revenue, North Block,New Delhi-110001.
2. The State of Tamilnadu,
Rep. by its Secretary,
Commercial Taxes and Registration
Department, Secretariat,
Chennai-600009
3. The Additional Director General,
Directorate of General of GST Intelligence (DGGI), Chennai Zonal Unit, Chennai.
4. The Commissioner of GST Central Excise, Appeals-ll (Appellate Authority), Commissionerate Chennai, No.2054, I -Block, II Avenue, Anna Nagar, Chennai-600040
WP No. 40387 of 2026
5. The Joint Commissioner of Central Tax, Office of the Commissioner of GST and Central Excise, Chennai - Outer Commissionerate, Newry Towers, No.2054-1, II Avenue, Anna Nagar, Chennai-600040.
..Respondent(s)
Prayer:
Writ Petition filed under Article 226 of the Constitution of India, praying for issuance of Writ of Certiorarified Mandamus, calling for the records of the Order-in-Original No.25/2025-GST (JC) dated 05.02.2025 in
C.No.GEXCOM/ADJN/GST/ADC/663/2024-ADJN, DIN 20250259XL000
021792C passed by the Fifth Respondent for the Assessment Years 2017-2018
to 2020-2021pursuant to issuance of Show Cause Notice bearing No. 38/2023
dated 30.03.2023 passed by the Third Respondent and quash the same as illegal, contrary to law and the jurisdiction do not reside with the Third and Fifth Respondents to levy GST on the sale of Alcoholic Liquor for human consumption which is exempt from levy of tax in terms of the Constitutional mandate as well as to issue a composite and consolidated Show Cause Notice for multiple years which is impermissible in law For Petitioner(s):
Mr.Haja Nazirudeen, Sr.counsel
for M/s.P.Haribabu
For Respondent(s):
Mr.A.P.Srinivas, Sr.St.counsel for R1, 3 to 5
Mr.I.Dinesh, AGP for R2
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Order
This writ petition has been filed challenging the impugned order dated 05.02.2025 passed by the respondent.
WP No. 40387 of 2026
2. When this writ petition was taken up for hearing, the learned counsel for the petitioner and the learned counsel for the respondent would submit that the issue involved in the present petition is with regard to the bunching of show cause notice/orders, i.e., issuance of single show cause notice/orders for more than one financial year.
3. Further, they would submit that the aforesaid issue has already been decided by this Court vide common order dated 21.07.2025 passed in W.P.Nos.29716 of 2024, etc., batch, wherein it has been held as follows: “28. (i) The GST Act permits only for issuance of show cause notice based on the tax period. Therefore, if the annual return is filed, the entire year would be considered as a tax period and accordingly, the show cause notice shall be issued based on the said annual returns.
(ii) If show cause notice is issued before the filing of annual returns, the same can be issued based on the filing of monthly returns;
(iii) If show cause notice is issued after the filing of annual returns or after the commencement of limitation, the said notice shall be issued based on the annual returns with regard to the relevant financial year.
(iv) No show cause notice can be clubbed and issued for more than one financial year since the same is impermissible in law.
WP No. 40387 of 2026
(v) In these cases, without any jurisdiction, the impugned show cause notices/orders came to be issued/passed for more than one financial year, which is impermissible in law and hence, the same is liable to be quashed. Accordingly, the impugned show cause notices/orders stand quashed based on the aspect of clubbing of show cause notices for more than one financial year.”
4. Therefore, considering the submissions made by the learned counsel for the petitioner and by following the aforesaid order dated 21.07.2025 passed in W.P.Nos.29716 of 2024, etc., batch, this Court holds that in this case, without any jurisdiction, the impugned order came to be passed for more than one financial year, i.e., for the AY 2017-18 to 2020-2021, which is impermissible in law and hence, the same is liable to be quashed.
5. Accordingly, this Court passes the following order:
(i) The impugned assessment order dated 05.02.2025 is quashed.
(ii) The respondent is granted liberty to initiate separate proceedings, against the petitioner, for each financial year, within a period of 4 weeks from the date of receipt of a copy of this order or prior to the date of expiry of limitation for each financial year, whichever is later.
WP No. 40387 of 2026
6. With the above directions, this writ petition is disposed of. No cost. Consequently, the connected miscellaneous petition is also closed. 07-10-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No nsa To
1. Union of India, rep. by its Secretary, Ministry of Finance,Department of Revenue, North Block,New Delhi-110001.
2. The State of Tamilnadu, Rep. by its Secretary, Commercial Taxes and Registration Department, Secretariat, Chennai-600009
3. The Additional Director General, Directorate of General of GST Intelligence (DGGI), Chennai Zonal Unit, Chennai.
4. The Commissioner of GST Central Excise, Appeals-ll (Appellate Authority), Commissionerate Chennai, No.2054, I -Block, II Avenue, Anna Nagar, Chennai-600040
5. The Joint Commissioner of Central Tax, Office of the Commissioner of GST and Central Excise, Chennai - Outer Commissionerate, Newry Towers, No.2054-1, II Avenue,Anna Nagar, Chennai-600040.
WP No. 40387 of 2026
KRISHNAN RAMASAMY J. nsa WP No. 40387 of 2026 07-10-2026