High Court: Petitioner Can’t Escape GST Liability by Crying ‘Unsigned’

The assessee, a proprietorship firm engaged in trading, received show-cause notices for FY 2017–18 and FY 2018–19 by the State Tax Department, claiming a difference in their tax obligations and outward supply declarations. The petitioner argued that the notices were time-barred as per Section 73(10) of the GST Act and that the department had neglected to supply essential information for a reply. The petitioner argued that the adjudication orders in Form GST DRC-07, which the Department issued in spite of these objections, were unsigned and not properly served.

The petitioner contended that it was not aware of the proceedings or the orders because it had cancelled its GST registration in 2019 and moved its business operations to Hyderabad. In continuation, the petitioner alleged a violation of principles of natural justice and a lack of a digital signature, which were rejected. Aggrieved by the said orders, the petitioner filed the present Special Civil Application before the High Court under Article 227 of the Constitution.

Issue Raised: Can GST adjudication orders that are uploaded to the portal without clearly signed PDFs be deemed unsigned and, as a result, void?

High Court Held: The High Court rejected the petition. It noted that as per Rule 26(3) of the CGST Rules, uploading an order on the GST portal requires digital authentication. The Court referred to its own precedent in Vishwa Enterprise v. State of Gujarat, clarifying that physical or visible digital signatures aren’t necessary as the very act of uploading implies authentication via digital credentials.

The Hon’ble Court also dismissed the arguments about the violation of principles of natural justice and condonation of delay, stating the petitioner was negligent and failed to provide any proof regarding cancellation of registration or inability to access the GST portal. The plea to remand the matter for reconsideration was also rejected, and the Court found no merit in arguments that orders lacked legitimacy or procedural compliance.

To Read Full Order, Download PDF Attached Below