Unsigned SCN and DRC-01A Nullify Signed GST Final Order, Rules Jharkhand HC [Read Order]

The petitioner, Sandip Kumar Singh challenged the assessment order dated 31.07.2023 passed under Section 73 of the Jharkhand Goods and Services Tax Act, 2017 for the Financial Year 2021-22.

The petitioner contended that both the SCN dated 29.04.2023 and the preceding DRC-01A dated 06.12.2022 were issued without the mandatory digital signature of the issuing authority, in violation of Rule 26(3) of the JGST Rules, 2017.

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The respondents argued that the final order (Annexure-7) bore a proper signature and was therefore valid.

Rejecting this argument, the Court held that the unsigned foundational documents vitiated the entire proceeding. The Bench observed that compliance with Rule 26(3) which requires digital signature authentication for all notices and orders is not a mere formality but a legal necessity.

The court observed that “Though, counsel for the respondents sought to sustain the same contending that Annexure-7 which is the impugned order contains the signature of the 5th respondent, we do not find any merit in the said contention for the reason that the preceding intimation being DRC-01A and the show cause notice under section 73 dt. 29.04.2023 do not bear the digital signature of the 5th respondent and, therefore, are vitiated. Consequently, Annexure-7 is also vitiated.”

As a result, the Court set aside the final assessment order and related communications, while granting liberty to the tax department to initiate fresh proceedings strictly in accordance with law and after issuing properly signed notices.

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