Facts of the Case

The petitioner, M/s Sai Sujatha Engineering Works, challenged the Assessment Order issued in FORM GST DRC-07 dated 17.08.2024 for the tax period 2019-20, along with the consequential demand notice dated 07.04.2026. The petitioner contended that the assessment order was invalid as it was issued without a Document Identification Number (DIN), without granting an opportunity of personal hearing, and without issuing FORM GST DRC-01A prior to passing the assessment order. The petitioner approached the Andhra Pradesh High Court under Article 226 of the Constitution seeking quashing of the assessment order and consequential demand notice.

Issues Involved

  1. Whether an assessment order issued without mentioning a Document Identification Number (DIN) is legally sustainable.
  2. Whether uploading an assessment order on the GST portal alone amounts to valid service under Section 169(1)(d) of the CGST/APGST Act, 2017.
  3. Whether delay in filing the writ petition should prevent the Court from exercising its writ jurisdiction where the assessment order suffers from patent legal defects.
  4. Whether the assessment should be remanded after setting aside the defective order subject to conditions.

Petitioner's Arguments

  • The assessment order was illegal as it was issued without a DIN, rendering it invalid.
  • No proper opportunity of personal hearing was granted before finalizing the assessment.
  • No FORM GST DRC-01A was issued before passing the assessment order.
  • The assessment order had not been conventionally served upon the petitioner, and mere uploading on the GST portal did not constitute effective service.
  • Consequently, the demand notice based upon such defective assessment was also liable to be quashed.

Respondent's Arguments

  • The State contended that the writ petition suffered from considerable delay since the assessment order had been passed on 17.08.2024.
  • It was argued that Section 169(1)(d) of the GST Act, 2017 specifically recognizes uploading of an order on the GST portal as a valid mode of service.
  • Therefore, the petitioner was deemed to have been served with the assessment order through the GST portal and could not rely upon ignorance or non-access of the portal to explain the delay.

Court Order / Findings

The Andhra Pradesh High Court allowed the writ petition and held:

  • The Court reiterated its earlier judgments in M/s Cluster Enterprises and Sai Manikanta Electrical Contractors, wherein it had already held that absence of a DIN is sufficient to invalidate an assessment order.
  • Although the writ petition was filed after delay, the Court recognized the practical difficulties faced by taxpayers under the GST online system.
  • The Court observed that while Section 169(1)(d) permits service through the GST portal, several genuine cases arise where taxpayers fail to receive effective knowledge of such orders.
  • Considering the patent defect of absence of DIN, the Court set aside the assessment order.
  • The matter was remanded to the Assessing Officer for passing a fresh assessment after granting proper opportunity of hearing.
  • The relief was made subject to the petitioner depositing 20% of the disputed tax within six weeks.
  • Any amount already paid or recovered after the impugned assessment order shall be adjusted against the required 20% deposit.
  • The period during which the writ petition remained pending shall stand excluded for limitation purposes.

Important Clarification

  • An assessment order issued without a Document Identification Number (DIN) is liable to be quashed.
  • Uploading an order on the GST portal may constitute a statutory mode of service under Section 169(1)(d); however, where the assessment order itself suffers from a patent legal defect, the High Court may exercise writ jurisdiction despite delay.
  • Courts may balance taxpayer hardship and revenue interests by directing deposit of a percentage of the disputed tax before remanding the matter.
  • Fresh assessment must be conducted only after providing proper opportunity of hearing in accordance with the GST law.

Sections Involved

  • Article 226 of the Constitution of India
  • Section 169(1)(d) of the Central Goods and Services Tax Act, 2017 / Andhra Pradesh GST Act, 2017
  • Section 73 of the CGST/APGST Act, 2017 (Assessment Proceedings)
  • Principles of Natural Justice
  • FORM GST DRC-01A
  • FORM GST DRC-07

Link to Download the Order

https://mytaxexpert.co.in/uploads/1784808911_1929compressed.pdf

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