Facts of the Case
The petitioner, M/s Sri Krishna Agencies,
represented by its proprietor Sri Potharaju Venkataramana, approached the High
Court challenging the assessment order passed by the first respondent on
25.06.2024.
The petitioner’s principal challenge was that the
assessment order did not contain a Document Identification Number (DIN)
and was therefore vitiated by the absence of such DIN.
The writ petition also sought setting aside of:
- the
appeal endorsement dated 22.07.2025 issued by Respondent No. 2;
- the
adjudication order dated 25.06.2024;
- the
summary in Form GST DRC-07 dated 25.06.2024;
- the
composite Show Cause Notice dated 14.11.2023; and
- the
summary in Form GST DRC-01 dated 15.11.2023.
The proceedings were stated to have been initiated
under Section 73(1) of the CGST Act, 2017, APGST Act, 2017 and IGST Act, 2017
for the Financial Year 2021-22.
The petitioner had also sought interim protection
against collection of disputed late fees amounting to Rs. 19,200.
The central issue ultimately considered by the
High Court was whether the assessment order dated 25.06.2024 could survive
despite the absence of a DIN.
Issues Involved
The principal issues arising in the matter were:
- Whether
a GST assessment order passed without a Document Identification Number
(DIN) is legally valid.
- Whether
absence of DIN constitutes an inherent or patent defect sufficient to
invalidate the assessment order.
- Whether
the assessment order dated 25.06.2024 was liable to be set aside for want
of DIN.
- Whether
uploading an assessment order on the GST portal constitutes valid service
under Section 169(1)(d) of the GST Act, 2017.
- Whether
delay in approaching the High Court could defeat the petitioner’s
challenge where the impugned order suffered from a patent irregularity.
- Whether
difficulties faced by registered persons in accessing or monitoring the
GST portal could be considered while granting writ relief.
- Whether
delayed writ petitions involving inherently defective assessment orders
could be entertained subject to deposit of 20% of disputed tax.
- Whether
the matter should be remanded to the Assessing Officer for fresh
adjudication after providing due opportunity of hearing.
- Whether
amounts already paid or recovered should be adjusted against the required
20% deposit.
- Whether
any period should be excluded for limitation purposes upon remand.
Petitioner’s Arguments
The petitioner challenged the assessment order
primarily on the ground that it did not contain a DIN.
The petitioner contended that:
- the
assessment order dated 25.06.2024 was vitiated because no Document
Identification Number had been mentioned;
- absence
of DIN constituted a fundamental defect affecting the validity of the
assessment order;
- the
copy of the assessment order had not been served upon the petitioner
through the conventional mode;
- the
respondents were merely claiming that the order had been served by
uploading it on the GST portal;
- the
petitioner’s challenge should not be rejected merely on the ground of
delay, particularly when the assessment order itself suffered from an
inherent defect; and
- the
matter required interference under Article 226 of the Constitution of
India.
The petitioner relied upon the circumstances
concerning non-service of the order through conventional means while responding
to the respondents’ objection regarding delay.
Respondents’ Arguments
The learned Government Pleader for Commercial
Taxes opposed the writ petition and specifically raised the issue of delay.
The respondents contended that:
- the
assessment order under challenge had been passed on 25.06.2024;
- the
petitioner had approached the High Court after an inordinate delay;
- such
delay had not been properly explained;
- Section
169(1)(d) of the GST Act, 2017 recognises uploading of an order on the
portal as a prescribed method of service upon a registered person; and
- once
the order was uploaded on the portal, service should be treated as having
been effected upon the petitioner.
Thus, the respondents sought to sustain the
consequences of the impugned proceedings by relying upon statutory electronic
service through the GST portal and the petitioner’s delay in invoking writ
jurisdiction.
Court’s Findings
The High Court noted that the petitioner had
approached the Court challenging the assessment order dated 25.06.2024 on the
specific ground that the order did not contain a DIN.
The Court observed that the same issue had already
been considered in earlier decisions, namely:
1. M/s Cluster Enterprises vs The Deputy
Assistant Commissioner (ST)-2, Kadapa
Citation: 2024
(88) G.S.T.L. 179 (A.P.)
The High Court noted that in this case it had
already held that absence of a DIN number would be sufficient to invalidate the
order.
2. Sai Manikanta Electrical Contractors vs
The Deputy Commissioner, Special Circle, Visakhapatnam
Citation: 2024
(88) G.S.T.L. 303 (A.P.)
The Court again referred to this precedent as
authority for the proposition that absence of DIN is sufficient to invalidate
the impugned order.
Accordingly, the High Court treated absence of DIN
as an inherent defect affecting the validity of the assessment order.
Findings on Delay and Service Through GST
Portal
The High Court separately examined the
respondents’ objection that the petitioner had approached the Court after
inordinate delay.
The petitioner submitted that the assessment order
had not been served through the conventional method and that the respondents
were claiming service merely through uploading the order on the portal.
The learned Government Pleader relied upon Section
169(1)(d) of the GST Act, 2017, contending that uploading an order on the
portal is a statutorily recognised method of service upon registered persons.
The Court referred to the decision of the
Allahabad High Court in:
M/s Bambino Agro Industries Ltd. vs State of
Uttar Pradesh and Another
Case No.: Writ Tax
No. 2707 of 2025
The Andhra Pradesh High Court noted that the
Allahabad High Court had held that uploading the order on the portal mentioned
by the GST authorities would not constitute sufficient service of the order
upon the registered person.
At the same time, the Court made an important
observation concerning registered persons who claim inability to access the GST
portal because of ignorance or because authorised persons acting on their
behalf fail to inform them about uploaded orders.
The Court clarified that, in the normal course,
such contentions would not be accepted because:
- ignorance
of law cannot ordinarily constitute sufficient cause; and
- inability
to access the portal cannot ordinarily be accepted as sufficient cause for
condoning delay in approaching the Court.
However, the High Court also recognised practical
difficulties arising from:
- introduction
of the GST regime; and
- introduction
of an online mechanism for administration of tax collection.
The Court therefore considered the hardships faced
by registered persons, especially where assessment orders suffer from patent
irregularities.
Court Order / Final Decision
The High Court held that the orders under
challenge suffered from an inherent defect because of the absence of a DIN
number.
Accordingly, the Court passed the following
directions:
- The
impugned assessment order was set aside.
- The
assessment was remanded back to the Assessing Officer.
- The
Assessing Officer was directed to pass appropriate orders after giving the
petitioner due opportunity of hearing as available under the provisions of
the GST Act.
- Relief
was made subject to the petitioner depositing 20% of the disputed tax
within six weeks.
- The
20% deposit would abide by the decision in the fresh order of assessment.
- Any
payment already made or any amount recovered from the petitioner after
passing of the impugned orders would be adjusted against the required 20%
deposit.
- The
period from the date of filing of the writ petition until the date of
receipt of the High Court’s order by the Assessing Officer would be
excluded for limitation purposes.
- All
issues were left open to be raised by the petitioner before the Assessing
Officer.
- The
writ petition was disposed of.
- There
was no order as to costs.
- Pending
miscellaneous applications, if any, stood closed.
Important Clarification
This judgment contains several significant
clarifications for GST proceedings:
A. Absence of DIN Is an Inherent Defect
The Court treated the absence of a Document
Identification Number as an inherent defect and relied upon its earlier
decisions holding that absence of DIN is sufficient to invalidate the order.
B. Delay Does Not Automatically Protect a
Patently Irregular Order
Although the petitioner approached the Court after
delay, the High Court considered the fact that the assessment order suffered
from a patent irregularity, namely absence of DIN.
The Court balanced:
- the
hardship faced by registered persons;
- practical
difficulties arising under the online GST regime; and
- the
State’s need to maintain effective administration of tax collection.
C. 20% Deposit as a Balancing Condition
The Court held that delayed writ petitions by
registered persons could be considered subject to payment of 20% of disputed
tax.
For this approach, the Court also drew support
from the judgment of the Madras High Court in W.P. No. 1474 of 2026.
D. Portal Access Difficulties Are Not
Automatically Sufficient Cause
The Court specifically clarified that, in the
normal course:
- ignorance
of law; or
- inability
to access the GST portal
would not ordinarily be accepted as sufficient
cause for condoning delay.
Therefore, the judgment should not be understood
as establishing a general rule that every claim of portal ignorance or
non-access automatically excuses delay.
E. All Issues Left Open on Remand
The Court expressly left all issues open for the
petitioner to raise before the Assessing Officer.
Therefore, the fresh adjudication is not confined
only to the DIN issue, and the petitioner may raise available issues before the
Assessing Officer in accordance with law.
Sections Involved
·
Section 73(1) of the CGST Act,
2017 / APGST Act, 2017
·
Section 169(1)(d) of the GST Act,
2017
·
Article 226 of the Constitution
of India
· Section 151 of the Code of Civil Procedure, 1908
Link to download the order - https://www.mytaxexpert.co.in/uploads/1783497547_1469compressed.pdf
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