Signature of AO is Mandatory in GST Assessment Order: Andhra Pradesh HC Invalidates Order, Permits Fresh Proceedings [Read Order]
The Andhra Pradesh High Court ruled that an unsigned GST assessment order is invalid, quashed the order, and permitted fresh proceedings with proper signature.
Signature - GST Assessment Order - Taxscan
Signature - GST Assessment Order - Taxscan
In a recent ruling, the Andhra Pradesh High Court held that the absence of the Assessing Officer’s signature in a GST assessment order renders it invalid, and such an order cannot be considered as served under law.
SLV Constructions, the petitioner, filed a writ petition challenging the assessment order dated 21 December 2023 and the summary order in Form GST DRC-07 dated 23 December 2023 issued by the Assistant Commissioner of State Tax, Bhimavaram, under the provisions of the CGST Act, 2017 for the financial year 2021-22.
The petitioner’s counsel argued that the impugned orders were void as they did not contain the signature of the Assessing Officer.
The Government Pleader for Commercial Tax, on instructions, admitted before the court that the impugned summary order did not bear the signature of the Assessing Officer.
The Division Bench comprising Justice R. Raghunandan Rao and Justice Challa Gunaranjan observed that earlier benches of the High Court, in cases such as A.V. Bhanoji Row v. Assistant Commissioner (ST), SRK Enterprises v. Assistant Commissioner, and SRS Traders v. Assistant Commissioner, had already explained that a signature on the assessment order is mandatory, and the defect cannot be cured by Sections 160 or 169 of the CGST Act.
The court also pointed out that under Rule 26(3) of the CGST Rules, 2017, a notice or order without a signature does not amount to valid service. It further referred to the judgment of the Madras High Court in T.V.L. Deepa Traders v. Deputy Commissioner, which took the same view. On this basis, the court held that even though the writ petition was filed with delay, such delay was irrelevant as there was in effect no service of the order.
The court quashed the summary order dated 23 December 2023 as well as the assessment order dated 21 December 2023, granting liberty to the Assistant Commissioner to conduct a fresh assessment after issuing due notice and assigning a proper signature.
The court also directed that the period from the date of the impugned orders until the receipt of the present judgment would be excluded for the purpose of limitation. The writ petition was accordingly disposed of, with no order as to costs.
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