Unsigned GST Assessment Order Set Aside by Andhra Pradesh High Court

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Case Name

Sandhya Constructions vs. The State of Andhra Pradesh & Others (High Court of Andhra Pradesh)

W.P. No. 31441 of 2024

Date: 3rd January 2025

Key Takeaways

• Unsigned assessment orders under GST are invalid: The court reaffirmed that an assessment order must be signed by the assessing officer to be legally valid.
• Prior judgments followed: The court relied on previous decisions, including 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.
• Fresh assessment allowed: The tax department can issue a new order, but it must be properly signed and due process must be followed.
• Limitation period paused: The time between the original (invalid) order and the court’s decision will not count towards the limitation period for issuing a new order.

Issue

Is an unsigned GST assessment order valid under the law, or must it be set aside as void and without legal effect?

Facts

• Who’s involved?
• Sandhya Constructions (the petitioner), represented by its sole proprietor, challenged the State of Andhra Pradesh and its tax authorities (the respondents).
• What happened?
• The company received a GST assessment order (Form GST DRC-07, dated 29.04.2023) for the period 2019-20 to 2020-21. The order was not signed by the assessing officer.
• Why the challenge?
• Sandhya Constructions argued that the unsigned order was illegal, arbitrary, and violated the GST Act, 2017, as well as Article 19(1)(g) of the Constitution (right to practice any profession or carry on any occupation, trade, or business).

Arguments

Petitioner (Sandhya Constructions)

• The assessment order is unsigned, making it void and unenforceable.
• The lack of signature violates the GST Act, 2017, and constitutional rights.
• Requested the court to set aside the order and stay its operation pending the writ petition.

Respondents (State of Andhra Pradesh & Tax Authorities)

• The Government Pleader for Commercial Tax admitted that the order was indeed unsigned.

Key Legal Precedents

The court cited and followed these key judgments:

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, and Sections 160 & 169 of the Central Goods and Services Tax Act, 2017, do not cure the defect of an unsigned order.

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

Set aside an unsigned assessment order, following the above precedent.

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

Reiterated that the absence of the assessing officer’s signature renders the order invalid.

Judgement

• Decision:
• The High Court allowed the writ petition, setting aside the unsigned assessment order in Form GST DRC-07, dated 29.04.2023.
• Reasoning:
• The absence of the assessing officer’s signature made the order invalid, as established by previous Division Bench judgments.
• Orders:
• The tax authorities are permitted to conduct a fresh assessment, but must provide 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 costs were awarded.

FAQs

Q1: Why was the assessment order set aside?

A: Because it was not signed by the assessing officer, making it invalid under the law and as per previous court decisions.

Q2: Can the tax department issue a new order?

A: Yes, the court allowed the department to issue a fresh, properly signed order after giving notice to the petitioner.

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 precedents 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 case mean all unsigned GST orders are invalid?

A: Yes, according to this and previous judgments, an unsigned GST assessment order is invalid and must be set aside.