Tax Order Invalidated: Unsigned Digital Document Lacks Legal Standing Under CGST Act Section 75

HC invalidated an unsigned tax order under CGST Act, 2017, following precedent that an unsigned order lacks legal enforceability. Despite tax authorities' argument about digital upload, the court ruled the order fundamentally defective. The HC directed authorities to issue a properly signed replacement order, effectively setting aside the original unsigned document.

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Issues Involved:
The validity of an unsigned order under the Central Goods and Services Tax Act, 2017.

Summary:

Issue 1: Validity of Unsigned Order

The petitioner challenged an order dated 05.06.2023, contending that it was not signed by the authority and therefore not legally enforceable. The petitioner relied on a previous court decision in the case of M/s. SRK Enterprises vs. Assistant Commissioner, where it was held that an unsigned order cannot be considered valid under the law. The Government Pleader for Commercial Tax argued that the order, although unsigned, was uploaded by the competent authority, invoking Sections 160 and 169 of the CGST Act, 2017.

In the case of M/s. SRK Enterprises, the court held that an unsigned order cannot be covered under the provisions of Section 160 of the CGST Act, 2017, which pertains to mistakes, defects, or omissions in an order related to assessment or adjudication. The court emphasized that an unsigned order is essentially no order in the eyes of the law, and the mere act of uploading it does not rectify the fundamental defect of lack of signature. The court also ruled that Section 169 of the CGST Act, 2017, dealing with the service of notices, does not apply to the situation of an unsigned order.

Consequently, the court allowed the petition and set aside the order issued on 05.06.2023, directing the respondent authorities to issue fresh orders in compliance with the law promptly. The writ petition was partially allowed, with no costs imposed, and any related pending miscellaneous petitions were ordered to be closed.

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