Consolidated show cause notice for multiple financial years/tax periods – Bombay High Court refers issue to its Larger Bench

The Division Bench of the Bombay High Court has referred to the Larger Bench the question of issuance of consolidated show cause notices by the Revenue department for multiple financial years/tax periods. 

The DB in Rollmet LLP v. Union of India [2026 VIL 377 BOM] doubted the correctness of the decision of a coordinate Bench in Milroc Good Earth Developers v. Union of India & Ors., wherein it was held that the proper officer lacks authority to club various financial years/tax periods, in issuing a single consolidated show cause notice under Section 73(1) & (3)/74(1) & (3) of CGST Act, 2017. 

The High Court in this regard also raised the questions as to whether the operation of Section 73/74, sub-section (1) read with sub-section (3) is in any manner controlled by the provisions of sub-section (10), and whether the provisions of sub-section (10) of Section 73/74 per se prohibits the issuance of single consolidated show cause notice for multiple financial years/tax periods.

It may be noted that other than the decision in the Milroc case by Bombay High Court, similar views have also been taken in various decisions by the High Courts of Kerala, Madras, Karnataka and Andhra Pradesh. Contrary views have been taken by the Delhi High Court and Allahabad High Court. Appeal against one of the decisions of the Delhi High Court has also been dismissed by the Supreme Court.