Unsigned GST Orders Invalid, Rules High Court
Hyderabad: A two-judge panel of the Telangana High Court held that unsigned showcause or demand notices by the GST authorities are unsustainable in law. A panel comprising acting Chief Justice Sujoy Paul and Justice Renuka Yara allowed a batch of petitions challenging the legality, validity and propriety of the showcause notices and final orders, which admittedly did not contain physical or digital signatures of the officer, although they were uploaded on the portal.
The case of the revenue was that the absence of a signature would not cause any dent to the showcause notices or orders, if the scheme of the Central Goods and Services Act, 2017 (GST Act) and the Central/Telangana State Goods and Services Rules, 2017 (GST Rules) were examined.
The respondent further contended that the taxation statute must be construed strictly. Thus, by inferential process, a fiscal statute cannot be interpreted in a way that is neither intended nor expressed. A plain reading of relevant provisions of the GST Act, the GST Rules and forms makes it clear that there is no requirement to put a physical/digital signature and placing the document on the portal is sufficient.
The batch of writ petitioners was represented by various counsel of the tax side. Both sections are silent about the requirement of a physical or digital signature and in that event, no rule can help the petitioners.
