Assessment Order Set Aside for Missing Officer’s Signature under GST Law

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Case Name

M/s Sree Viswa Sai Traders vs. The Assistant Commissioner State Tax and Others (High Court of Andhra Pradesh at Amaravati)

Writ Petition No. 21463/2024

Date: 19th February 2025

Key Takeaways

• Unsigned assessment orders are invalid: The court reaffirmed that an assessment order under the GST Act must be signed by the assessing officer.
• Legal precedent followed: The decision relied on previous judgments, making it clear that this is now settled law in Andhra Pradesh.
• Fresh assessment allowed: The tax department can issue a new order, but it must be properly signed and after giving notice to the taxpayer.
• Limitation period paused: The time between the original (invalid) order and the court’s decision won’t count against the department for limitation purposes.

Issue

Does the absence of the assessing officer’s signature on a GST assessment order render the order invalid and unenforceable?

Facts

• Who’s involved?
• Petitioner: M/s Sree Viswa Sai Traders
• Respondent: The Assistant Commissioner State Tax and others
• What happened?
• The petitioner received a GST assessment order (Form GST DRC-07) dated 11.12.2023, covering the period 2017-18 to 2021-22.
• The order was challenged on several grounds, the main one being that it was not signed by the assessing officer.
• The Government Pleader for Commercial Tax admitted in court that the order indeed lacked the officer’s signature.

Arguments

• Petitioner’s Arguments:
• The assessment order is invalid because it does not bear the signature of the assessing officer.
• Such a defect cannot be cured by any provision of the GST Act.
• Respondent’s Arguments:
• The Government Pleader, on instructions, conceded that the order was unsigned.

Key Legal Precedents

The court relied on three key precedents:

1. A.V. Bhanoji Row Vs. The Assistant Commissioner (ST), W.P.No.2830 of 2023, decided on 14.02.2023:

• Held that the signature on an assessment order cannot be dispensed with.
• Sections 160 & 169 of the Central Goods and Service Tax Act, 2017, do not cure the defect of a missing signature.

2. M/s. SRK Enterprises Vs. Assistant Commissioner, W.P.No.29397 of 2023, decided on 10.11.2023:

• Followed the above judgment and set aside an unsigned assessment order.

3. M/s. SRS Traders Vs. The Assistant Commissioner ST & ors, W.P.No.5238 of 2024, decided on 19.03.2024:

• Reiterated that an unsigned assessment order is invalid and must be set aside.

Judgement

• Decision:
• The High Court set aside the assessment order dated 11.12.2023 due to the absence of the assessing officer’s signature.
• The tax department is allowed to conduct a fresh assessment, but must give notice and ensure the new order is properly signed.
• The period between the original order and the court’s decision is excluded from the limitation period for issuing a new order.
• No order as to costs.

FAQs

Q1: Why was the assessment order set aside?

A: Because it was not signed by the assessing officer, which is a mandatory requirement under the law.

Q2: Can the tax department issue a new order?

A: Yes, the court gave the department liberty to issue a fresh, properly signed assessment order after giving notice to the taxpayer.

Q3: What happens to the limitation period for issuing a new order?

A: The time between the original (invalid) order and the court’s decision is excluded from the limitation period.

Q4: What legal provisions and cases did the court rely on?

A: The court cited Sections 160 & 169 of the Central Goods and Service Tax Act, 2017, and followed the judgments in A.V. Bhanoji Row, M/s. SRK Enterprises, and M/s. SRS Traders.

Q5: Does this mean all unsigned GST orders are invalid?

A: Yes, according to this and previous Andhra Pradesh High Court decisions, unsigned assessment orders under the GST Act are invalid.