GST Assessment Order Invalidated Due to Lack of Assessing Officer’s Signature
Summary in Key Points:
- Issue: Whether a GST assessment order is valid if it lacks the signature of the Assessing Officer.
- Facts: The petitioner challenged an assessment order issued in Form GST DRC-07, arguing that it was invalid because it did not contain the signature of the Assessing Officer.
- Decision: The High Court, relying on precedent decisions, held that the absence of the Assessing Officer’s signature rendered the assessment order invalid. The court set aside the order and allowed the tax authorities to conduct a fresh assessment.
ANALYSIS:
The High Court ruled in favor of the petitioner, setting aside the impugned assessment order. The court emphasized the following:
- Signature as Essential Requirement: The court affirmed that the signature of the Assessing Officer on an assessment order is an essential requirement for its validity. This is in line with established legal principles and ensures accountability and authenticity of the order.
- Precedent Decisions: The court referred to previous decisions that had established the invalidity of unsigned assessment orders.
- Fresh Assessment: The court granted liberty to the respondent-authority to conduct a fresh assessment after issuing proper notice and ensuring the assessment order is duly signed.
Important Note: This case reinforces the importance of procedural compliance in GST assessments. The absence of the Assessing Officer’s signature on an assessment order is a significant procedural lapse that can render the order invalid. This decision serves as a reminder to tax authorities to ensure that all assessment orders are properly signed to avoid challenges to their validity. It also highlights the importance of following due process and ensuring that all necessary formalities are completed to maintain the integrity of the assessment process.
HIGH COURT OF ANDHRA PRADESH
Usman Enterprises
v.
Assistant Commissioner ST
R. Raghunandan Rao and MAHESWARA RAO KUNCHEAM, JJ.
WRIT PETITION NO: 25707 of 2024
DECEMBER 11, 2024
Shaik Jeelani Basha for the Petitioner.
ORDER
R. Raghunandan Rao, J.- The petitioner was served with an assessment order in Form GST DRC-07, dated 18.05.2024, passed by the 1st respondent, under the Goods and Service Tax Act, 2017 [for short “the GST Act”] for the period 2019 to 2020. This order has been challenged by the petitioner in the present writ petition.
2. This assessment order, in Form GST DRC-07, is challenged by the petitioner, on various grounds, including the ground that the said proceeding does not contain the signature of the assessing officer.
3. Learned Government Pleader for Commercial Tax, on instructions, submits that there is no signature of the assessing officer, on the impugned assessment order.
4. The effect of the absence of the signature, on an assessment order was earlier considered by this Court, in the case of A.V. Bhanoji Row v. The Assistant Commissioner (ST), in W.P.No.2830 of 2023, decided on 14.02.2023. A Division Bench of this Court, had held that the signature, on the assessment order, cannot be dispensed with and that the provisions of Sections-160 & 169 of the Central Goods and Service Tax Act, 2017, would not rectify such a defect. Following this Judgment, another Division Bench of this Court, in the case of M/s. SRK Enterprises v. Assistant Commissioner, in W.P.No.29397 of 2023, decided on 10.11.2023, had set aside the impugned assessment order.
5. Another Division Bench of this Court by its Judgment, dated 19.03.2024, in the case of M/s. SRS Traders v. The. Assistant Commissioner ST & ors, in W.P.No.5238 of 2024, following the aforesaid two Judgments, had held that the absence of the signature of the assessing officer, on the assessment order, would render the assessment order invalid and set aside the said order.
6. Following the aforesaid Judgments, the impugned assessment order would have to be set aside on account of the absence of the signature of the assessing officer, on the impugned assessment order.
7. Accordingly, this Writ Petition is disposed of setting aside the impugned assessment order in Form GST DRC-07, dated 18.05.2024, issued by the 1st respondent, with liberty to the 1st respondent to conduct fresh assessment, after giving notice and by assigning a signature to the said order. Needless to say, the period from the date of filing of the Writ Petition to the date of disposal of the Writ Petition shall be excluded for the purpose of calculating the limitation available for passing the assessment order. There shall be no order as to costs.