Authority: High Court of Judicature at Bombay, Nagpur Bench
Order Date: 30 October 2026
Case Overview
- Parties: M/s. Balaji Trading Company (petitioner) vs. The State of Maharashtra and other respondents.
- Counsel: Mr. Sahil S. Dewani for petitioner; Mr. S.A. Ashirgade, A.G.P. for respondent No.1; Ms. Ketki Jaltare‑Vaidya for respondents Nos.2‑4.
- Issue: Whether a single show‑cause notice under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) can club different financial years/tax periods.
- Background: The matter relates to an earlier order dated 11 September 2026 in Writ Petition No. 2978/2026 (Ganesh Valmik Bawane vs. Joint Director, Directorate General of GST Intelligence, Nagpur Zonal Unit & Anr.) where the Court held that a single Section 74 notice cannot club multiple periods.
- Precedents Cited:
- Ganesh Valmik Bawane vs. Joint Director, Directorate General of GST Intelligence (2026).
- M/s. Milroc Good Earth Developers vs. Union of India & Ors. (Writ Petition No. 2203/2025 decided on 9 Oct 2025).
- Rite Water Solutions (India) Ltd. vs. Joint Commissioner, CGST & Central Excise, Nagpur & Ors. (Writ Petition No. 466/2025 decided on 28 Nov 2025).
- Reasoning: The Court reiterated that under the prevailing law, a single show‑cause notice under Section 74 cannot amalgamate distinct financial years or tax periods. Consequently, the impugned notices and the order dated 25 September 2025 issued by respondent No.3 are invalid.
Final Outcome
- The impugned show‑cause notices and the order dated 25 September 2025 are quashed and set aside.
- Respondents are at liberty to re‑issue notices in accordance with Sections 73, 74 or 74A of the CGST Act, provided no other legal impediment exists.
- The petition is disposed of in the above terms with no order as to costs.
Topics: GST, Legal Dispute