Nominee Works Committee Kalavalla vs. Revenue [TU-IDT-12-HC-2026]
Background of the Case
The petitioner challenged a GST assessment order issued in Form GST DRC-07 for FY 2022-23 along with consequential recovery proceedings initiated through Form GST DRC-16. The dispute primarily related to levy of GST at the rate of 18% on works contract services executed for a State Government department. However, the petitioner questioned the very validity of the assessment order on the ground that the DRC-07 order dated 25.07.2023 did not bear the signature of the Proper Officer. The Revenue contended that the order had already been served by uploading it on the GST portal and that the writ petition had been filed with considerable delay. The matter was therefore placed before the Andhra Pradesh High Court to determine whether an unsigned assessment order could survive in law and whether the delay in approaching the Court would disentitle the petitioner from relief.
Arguments by the Appellant (Taxpayer)
The petitioner contended that the impugned DRC-07 order was void and unenforceable as it lacked the signature of the Proper Officer. Reliance was placed on earlier decisions of the Andhra Pradesh High Court, including A.V. Bhanoji Row, SRK Enterprises and SRS Traders, wherein the Court had consistently held that an assessment order without a valid signature is legally defective and cannot be sustained. The petitioner further submitted that the assessment order had not been served through conventional means and was merely uploaded on the GST portal. It was argued that the petitioner became aware of the proceedings only subsequently and therefore the delay in approaching the Court ought not to defeat a challenge against an order suffering from a patent legal defect.
Respondent’s Response (Revenue Department)
The Revenue opposed the writ petition on the ground of delay and submitted that the petitioner had failed to explain the prolonged period between issuance of the assessment order and filing of the writ petition. The department further argued that Section 169(1)(d) of the CGST Act specifically recognizes uploading of notices and orders on the GST portal as a valid mode of service upon a registered person. Accordingly, the department contended that the petitioner could not avoid the consequences of the assessment merely by claiming lack of knowledge of the order. The Revenue therefore sought dismissal of the writ petition while defending the validity of the assessment proceedings.
Court Findings and Decision
The Andhra Pradesh High Court held that the issue was squarely covered by its earlier judgments which had categorically ruled that the absence of the Proper Officer’s signature renders an assessment order invalid and that such a defect cannot be cured under Sections 160 or 169 of the GST Act. While the Court acknowledged the department’s objection regarding delay and recognized that uploading of orders on the GST portal is generally treated as a valid mode of service, it also took note of the practical difficulties faced by taxpayers under the GST regime and the recurring disputes relating to access and awareness of portal-based communications. Balancing the interests of both parties, the Court set aside the unsigned DRC-07 assessment order and remanded the matter to the Proper Officer for fresh adjudication after providing an opportunity of hearing to the petitioner. However, the relief was made subject to the condition that the petitioner deposits 20% of the disputed tax within six weeks. The Court further directed that the period during which the writ petition remained pending shall be excluded for limitation purposes and left all issues open for reconsideration by the Proper Officer.
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