Unsigned GST Assessment Order Set Aside by Andhra Pradesh High Court

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Case Name

Vemula Veera Swamy vs. The State of Andhra Pradesh and Others (High Court of Andhra Pradesh)

Writ Petition No. 29587/2024

Date: 18/12/2024

Key Takeaways

• Unsigned assessment orders under GST law are invalid.
• The court reaffirmed that signatures of assessing officers are mandatory on such orders.
• Previous judgments on this issue were followed, strengthening the legal position.
• The authorities can issue a fresh order, but only after proper notice and with a valid signature.
• The period between the original order and the court’s decision is excluded from limitation calculations.

Issue

Is a GST assessment order valid if it is not signed by the assessing officer?

Facts

• Petitioner: Vemula Veera Swamy
• Respondents: The State of Andhra Pradesh and others (represented by the Government Pleader for Commercial Tax)
• The petitioner received a show-cause notice (Form GST DRC-01A, dated 18.01.2023) and an assessment order (Form GST DRC-07, dated 25.04.2023) for the financial years 2019-20 and 2020-21.
• The main grievance: The assessment order did not bear the signature of the assessing officer.
• The petitioner challenged the validity of this unsigned order in the High Court.

Arguments

Petitioner’s Arguments

• The assessment order is invalid because it lacks 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 for Commercial Tax admitted that the assessment order was indeed unsigned.

Key Legal Precedents

The court relied on several previous decisions:

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 is mandatory.
• Sections 160 & 169 of the Central Goods and Service Tax Act, 2017, cannot cure the absence of a 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 unsigned assessment orders are invalid and must be set aside.

Statutory References:

• Sections 160 & 169 of the Central Goods and Service Tax Act, 2017: These sections deal with procedural aspects and service of orders, but the court held they do not excuse the absence of a signature on an assessment order.

Judgement

• The High Court set aside both the show-cause notice (Form GST DRC-01A, dated 18.01.2023) and the unsigned assessment order (Form GST DRC-07, dated 25.04.2023).
• The court granted liberty to the authorities to conduct a fresh assessment, but only after giving proper notice and ensuring the new order is duly signed.
• The period from the date of the impugned order to the date of receipt of the court’s order is excluded for limitation purposes.
• 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 authorities issue a new order?

A: Yes, the court allowed the authorities to issue a fresh, properly signed

order after giving due notice to the petitioner.

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

A: The time between the original (now quashed) 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 relied on Sections 160 & 169 of the CGST Act, 2017, and previous High Court decisions:

• A.V. Bhanoji Row Vs. The Assistant Commissioner (ST)
• M/s. SRK Enterprises Vs. Assistant Commissioner
• 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, unsigned GST assessment orders are invalid and can be set aside by the court.