Unsigned GST Assessment Order Set Aside by Andhra Pradesh High Court

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Case Name

M/s Usman Enterprises vs. The Assistant Commissioner (ST) & Others (High Court of Andhra Pradesh)

Writ Petition No: 11289/2025

Date: 13th April 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 earlier cases—A.V. Bhanoji Row vs. The Assistant Commissioner (ST), M/s. SRK Enterprises vs. Assistant Commissioner, and M/s. SRS Traders vs. The Assistant Commissioner ST & ors.
• No signature, no validity: Sections 160 & 169 of the Central Goods and Service Tax Act, 2017, cannot cure the defect of a missing signature.
• 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 under the Central Goods and Service Tax Act, 2017?

Facts

• Who’s involved?
• Petitioner: M/s Usman Enterprises
• Respondent: The Assistant Commissioner (ST) and others
• What happened?
• The petitioner received a GST assessment order (Form GST DRC-07) dated 25.04.2024 for the financial year 2018-19.
• The order was not signed by the assessing officer.
• M/s Usman Enterprises challenged the order in the High Court, arguing that the lack of a signature made it invalid.
• The government’s lawyer admitted that the order was indeed unsigned.

Arguments

Petitioner (M/s Usman Enterprises)

• The assessment order is invalid because it lacks the signature of the assessing officer.
• The GST Act requires such orders to be signed to be legally valid.

Respondent (Assistant Commissioner, ST)

• The government pleader confirmed the order was unsigned.
• No substantial defense was raised against the petitioner’s main argument.

Key Legal Precedents

The court relied on three main precedents:

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

• Held that a signature on the assessment order is mandatory.
• Sections 160 & 169 of the CGST Act, 2017, cannot cure the defect of a missing signature.

2. M/s. SRK Enterprises vs. Assistant Commissioner, W.P.No.29397 of 2023 (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 (19.03.2024):

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

Statutory References:

• Sections 160 & 169 of the Central Goods and Service Tax Act, 2017:
• The court clarified that these sections do not allow an unsigned order to be considered valid.

Judgement

• The High Court set aside the assessment order dated 25.04.2024 due to the absence of the assessing officer’s signature.
• The court allowed the tax department to conduct a fresh assessment, provided they give notice to the petitioner 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; all pending applications are closed.

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 them permission to issue a fresh, properly signed 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 CGST Act, 2017, and followed the judgments in A.V. Bhanoji Row vs. The Assistant Commissioner (ST), M/s. SRK Enterprises vs. Assistant Commissioner, and M/s. SRS Traders vs. The Assistant Commissioner ST & ors.

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

A: Yes, according to this and previous High Court decisions, an unsigned GST assessment order is invalid and unenforceable.