If SCN Is Issued Without GST Authority’s Signature, Demand Order Can’t Be Saved Even If It Is Signed: Jharkhand High Court
The Jharkhand High Court has made it clear that an order raising GST demand cannot be saved even if it is properly authenticated by the issuing authority, if the show cause notice preceding it was not signed.
A division bench of Chief Justice M.S. Ramachandra Rao and Justice Rajesh Shankar was dealing with a Petitioner’s grievance that Form GST DRC-01A issued to him under section 73(1) of the Jharkhand GST Act was not signed by the authority.
For context, Form GST DRC-01A is a pre-show cause notice intimation with reference to Section 73 (Determination of tax not paid or short paid).
Petitioner further argued that the SCN under section 73, on the basis of which the impugned demand order was passed, also did not bear the signature of the issuing authority.
He relied on Rule 26(3) of the Jharkhand Goods and Service Tax Rules, 2017 which mandates issuance of notices, certificates or orders only through a digital signature certificate.
Counsel for the Respondent-Department opposed the plea by contending that the impugned order contains the signature of the issuing authority- Assistant Commissioner of State Tax.
Unconvinced however, the Court said, “we do not find any merit in the said contention for the reason that the preceding intimation being DRC-01A and the show cause notice under section 73 do not bear the digital signature of the 5th respondent and, therefore, are vitiated.”
Accordingly, the demand was set-aside with liberty to the Respondents to initiate proceedings afresh in a proper manner.
Appearance: For the Petitioner: Mr. P.P.N. Roy, Sr. Advocate Mr. Deepak Kumar Ruia, Advocate For the Respondents: Mr. Sahbaj Akhtar, A.C. to AAG-III
Case title: Sandip Kumar Singh v. State of Jharkhand & Ors.
Case no.: W.P.(T) No. 2129 of 2025
