Facts of the Case

M/s Venkateswara Traders challenged an order dated 18.03.2023 passed by the Deputy Assistant Commissioner (ST)-1 under Section 73 of the CGST/SGST Act, 2017, in Form GST DRC-07, raising a tax and penalty demand for the periods 2021-22 and 2022-23. The petitioner contended the order was passed without a signature or digital signature, and without considering its detailed objections filed on 31.01.2023, making it arbitrary, contrary to the CGST and SGST Acts, without jurisdiction, and in violation of principles of natural justice.

Issues Involved

  1. Whether the GST demand order under Section 73, said to lack a signature or digital signature and to have been passed without considering the petitioner's objections, should be examined by the writ court or left to the statutory appellate process.

Petitioner's Arguments

  • The impugned order in Form GST DRC-07 was passed without any signature or digital signature, rendering it invalid.
  • The petitioner's detailed objections dated 31.01.2023 were not considered before the order was passed, violating principles of natural justice.

Respondent's Arguments

  • No detailed defence on merits is recorded in the order; the matter was disposed of on the availability of an alternate remedy.

Court Order / Findings

  • The Court, without going into the merits of the petitioner's contentions, held that since the petitioner had an alternative and efficacious remedy of filing a statutory appeal against the Section 73 order, liberty was granted to file such an appeal if so advised.
  • The writ petition was accordingly closed, with no costs, and pending applications, if any, were also closed.

Important Clarification

The Court did not decide whether the absence of a signature on the demand order was fatal, nor whether the objections had actually been ignored — these substantive questions were left entirely to be raised, if the petitioner chooses, in a statutory appeal. This order should not be read as either endorsing or rejecting the validity of an unsigned DRC-07 order.

Sections Involved

  • Central Goods and Services Tax Act, 2017 and Andhra Pradesh Goods and Services Tax Act, 2017 — Section 73 (demand of tax not paid/short paid), Form GST DRC-07
  • Article 226 of the Constitution of India — writ jurisdiction

Decision – In Favour of

Decided against the petitioner on the threshold — the writ petition was closed without examining the merits, with liberty to file a statutory appeal against the Section 73 order.

Case Details

  • Court: High Court of Andhra Pradesh at Amaravati
  • Case No.: WP No. 10692 of 2023
  • Coram: Justice U. Durga Prasad Rao and Justice Venkata Jyothirmai Pratapa
  • Date of Order: 27 April 2023

Link to Download the Order

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