Judicial Corner:
Unsigned GST Show Cause Notice and Assessment Order Invalid { High Noon Consulting Private Limited v. Deputy Commissioner of State Tax W.P. No. 17720 of 2024}
Facts
- The petitioner challenged a GST Show Cause Notice and the consequential Assessment Order issued under the CGST/TGST Acts.
- The principal ground of challenge was that neither the SCN nor the Assessment Order bore the issuing authority’s digital signature or physical signature.
- The petitioner contended that such authentication is mandatory under Rule 26(3) of the CGST Rules, 2017, and therefore the proceedings were void.
Issue
Whether a GST Show Cause Notice and Assessment Order issued without a digital or physical signature of the proper officer are legally valid under Rule 26(3) of the CGST Rules, 2017.
Held
The Telangana High Court held that an unsigned Show Cause Notice and Assessment Order are legally invalid. Rule 26(3) mandates authentication of such documents through a digital signature, e-signature, or any other prescribed mode of verification. An unsigned order has no legal sanctity and cannot be treated as a valid order in the eyes of law. Accordingly, the Court quashed both the Show Cause Notice and the Assessment Order, while granting liberty to the tax authorities to initiate fresh proceedings in accordance with law.
