GST Update

 Desk of CA. Praveen Sharma – 1013 Series (CAPS) 

ANDHRA PRADESH HIGH COURT IN THE CASE OF Subbaiah Gas Agency

The petitioner challenged assessment orders dated 02.02.2025 and 05.02.2025 on the ground that the orders were unsigned by the Assessing Officer, making them invalid.

The Court noted that earlier judgments have clearly established that an assessment order must bear the signature of the competent authority, and absence of such signature renders the order legally defective and unenforceable.

On the issue of delay, the department argued that the orders were served through the GST portal. However, the petitioner contended non-receipt through conventional modes. The Court acknowledged practical challenges faced by taxpayers in accessing portal communications.

Considering both legal defects and practical hardships, the Court held that:

Unsigned orders are invalid and liable to be set aside

Matter should be remanded for fresh adjudication

Proper opportunity of hearing must be given

However, to balance revenue interests, the Court directed the petitioner to:

Deposit 20% of disputed tax within 6 weeks

Recovery actions, if any, were also set aside.

Key Takeaway:

Unsigned GST orders are invalid; however, relief may be subject to conditional deposit.

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Regards
CAPS