GST Assessment Order Invalidated for Lack of Signature; Fresh Assessment Ordered

Issue: Whether a GST assessment order in Form GST DRC-07 is valid if it lacks the signature of the assessing officer.

Facts:

The petitioner challenged an assessment order dated October 26, 2023, passed by the department, contending that it was invalid due to the absence of the assessing officer’s signature.

Decision:

The court, relying on various precedents, held that the lack of signature rendered the assessment order invalid.
The court set aside the impugned order and granted the department liberty to conduct a fresh assessment, ensuring the inclusion of the assessing officer’s signature.

Key Takeaways:

This case reaffirms the importance of the assessing officer’s signature as an essential requirement for valid GST assessment orders.
The signature signifies the authenticity and finality of the assessment, ensuring accountability and proper execution of the order.
The absence of the signature invalidates the assessment order, highlighting the need for strict adherence to procedural requirements in GST assessments.

HIGH COURT OF ANDHRA PRADESH

Paramount Footwear

Assistant Commissioner

R. Raghunandan Rao and MAHESWARA RAO KUNCHEAM, JJ.

WRIT PETITION NO: 30400 of 2024

DECEMBER 24, 2024

J. N Venkata Suresh Kumar, for the Petitioner.

ORDER

1. The petitioner was served with an assessment order in Form GST DRC-07, dated 26.10.2023, passed by the 1^st respondent, under the Goods and Services Tax Act, 2017 [for short “the GST Act”] for the periods 2019-20 and 2020-21. 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 26.10.2023, issued by the 1^st respondent, with liberty to the 1^st respondent to conduct fresh assessment, after giving notice and by assigning a signature to the said order. The period from the date of the impugned assessment order, till the date of receipt of this order shall be excluded for the purposes of limitation. There shall be no order as to costs.

8. As a sequel, interlocutory applications pending, if any shall stand closed.