Absence of Signature Doesn’t Invalidate GST Order; Appeal is the Proper Remedy.
Issue
Can a GST Order-in-Original be considered void and challenged through a writ petition solely because it lacks the physical signature of the issuing officer, especially when the accompanying summary in Form DRC-07 contains all the officer’s details?
Facts
- An assessee received a rectification order under Section 161 of the CGST Act.
- Instead of filing a statutory appeal, the assessee filed a writ petition in the Delhi High Court.
- The primary ground for the writ was that the original assessment order was invalid because it was not physically signed by the officer.
- The Form DRC-07 (Summary of the Order) that accompanied the order, however, clearly mentioned the officer’s name, designation, and ward details.
Decision
- The Delhi High Court dismissed the writ petition.
- It held that the absence of a physical signature is a procedural defect that does not render the order-in-original void or invalid.
- The court ruled that the presence of the officer’s complete details on the accompanying Form DRC-07 is sufficient for authentication and validates the order.
- The court directed the assessee to pursue the correct legal path, which is to file a statutory appeal against the rectification order, along with the mandatory pre-deposit, instead of invoking the extraordinary writ jurisdiction.
Key Takeaways
- Substance Over Form: The judiciary will not invalidate an order on a minor procedural technicality like a missing signature, especially when the substance and authenticity of the order are not in doubt.
- DRC-07 Provides Authentication: A comprehensive Form DRC-07 serves a crucial function. It not only summarizes the demand but also acts as an authenticating document for the main order when it contains the necessary details of the issuing officer.
- Exhaust Statutory Remedies First: Writ petitions are an extraordinary remedy and should not be used to bypass the structured appellate mechanism provided under the GST law. The correct first step to challenge an order is to file an appeal under Section 107.
- Appeal is the Correct Path: Even if an order has a procedural defect, the appropriate recourse is to challenge it on both procedural and substantive grounds before the designated appellate authority, not directly in a High Court writ.