High Court Sets Aside GST Orders for non-generation of Document Identification Number (DIN)

GST orders that have been given without a Document Identification Number (DIN) are null and void. The impugned assessment orders have been quashed by the High Court and the case has been remanded for a fresh adjudication but with the condition of a deposit of 20% of the disputed tax.

Facts of the Case

The Petitioner Vish Wind Infrastructure LLP had approached the High Court against the GST proceedings initiated by the concerned authorities, which included intimation in Form GST DRC-01A, a show cause notice in Form GST DRC-01 and a final assessment order in Form GST DRC-07 under Section 73 of the CGST Act. It was contended that these proceedings were invalid as they lacked a mandatory Document Identification Number (DIN) or RFN number and service of the orders was not proper as they were only uploaded on the GST portal and no conventional mode of service was followed.

Issue

1. Are the goods and services tax (GST) orders without DIN legally valid?

2. Is uploading of orders on the GST portal equal to the service of orders?

3. Whether there is a condonable delay in filing a writ petition in view of facts and circumstances in the present case?

Court’s Observation

The Court has noted that it has repeatedly taken a view that the absence of DIN makes such orders non-est. Under the GST Act, service is complete on uploading to the portal under section 169, but the court took note of hardships faced by assessees in accessing such communications. “Normally, external factors like not knowing law/websites etc. would not justify a grant of time or extension,” the bench said while recognising that GST was different and required a more liberal approach because there were many issues in using technology. Further ,It has been rightly held by the Court that an order suffering from inherent defects, such as non-inclusion of DIN being completely omitted in PAN/Aadhaar, can not be a valid order.

Judgement

The impugned order is set aside on the sole ground of computer non-generation of a valid Document Identification Number (DIN) and the case is remanded to the Assessing Officer to pass a fresh order after affording an opportunity of being heard to the petitioner. However, it shall be incumbent upon the petitioner to make a pre-deposit of 20% of the disputed tax within 6 weeks from today before the Assessing Officer. If such an amount has already been paid by the petitioner, the same may be treated as compliance with this direction. The issues are left open and may be decided afresh.