Facts of the Case

Ten connected writ petitions, led by M/s. South 6 Enterprises and including similarly-placed Telangana GST-registered entities, challenged show-cause notices, assessment orders (Forms GST DRC-01/DRC-07) and consequential bank attachments/garnishee notices issued under Section 73 of the CGST/TGST Act, 2017 for tax periods ranging from 2017-18 to 2020-21, on the common ground that the notices and orders lacked physical or digital signature of the issuing officer and, in some cases, a Document Identification Number, contrary to Rule 26(3) of the CGST Rules, 2017. The Telangana High Court at Hyderabad, per Acting Chief Justice Sujoy Paul and Justice Renuka Yara, heard the batch together given the similarity of issues and disposed of it by common order on 19 June 2025.

Issues Involved

  1. Whether show-cause notices and assessment orders under Section 73 of the CGST/TGST Act, issued without physical or digital signature of the officer concerned, are valid.
  2. Whether the absence of a Document Identification Number independently vitiates such notices/orders.
  3. Whether consequential bank attachments and garnishee notices must be revoked once the underlying notice/order is set aside.

Petitioner's Arguments

  • The show-cause notices and/or assessment orders in Form GST DRC-01 and DRC-07 for the respective tax periods bore no physical or digital signature of the issuing officer, contrary to Rule 26(3) of the CGST Rules, 2017.
  • Several of the impugned notices/orders also lacked a Document Identification Number as mandated by CBIC Circular No. 128/47/2019-GST, rendering them non-est and void in law.
  • Some petitioners additionally challenged non-compliance with Rule 142(1A)/142(14) (no DRC-01A issued), inadequate opportunity of hearing, and time-barred initiation, seeking the notices, orders and consequential bank/garnishee attachments to be quashed as illegal and without jurisdiction.

Respondent's Arguments

  • Learned Special Government Pleader for State Tax, for the respondents, agreed that since the impugned notices and orders were unsigned, they were liable to be set aside in view of the common order already passed by the Court in W.P.No.21101 of 2024 and batch, dated 28.02.2025.
  • No opposition was pressed to setting aside the notices/orders on this ground.

Court Order / Findings

  • The Court noted the common concession that the impugned notices and/or orders across all ten writ petitions were unsigned, and applied its earlier common order in W.P.No.21101 of 2024 and batch (dated 28.02.2025) covering identical defects.
  • An unsigned show-cause notice or assessment order issued under the CGST/TGST Act cannot be sustained and is liable to be set aside along with any consequential bank attachment, but this does not bar the department from issuing a fresh, properly signed notice or order.
  • The impugned notices and orders in all the connected writ petitions were set aside, and consequential bank attachments/garnishee notices, where issued, stood revoked.
  • Liberty was reserved to the respondents to issue fresh show-cause notices/orders in accordance with law, and it was clarified that limitation would not operate as a hurdle for the department in doing so; the petitions were disposed of without costs and without expressing any opinion on merits.

Important Clarification

  • A GST show-cause notice or assessment order that is neither physically nor digitally signed by the issuing officer is non-est and must be set aside, regardless of the tax period or the specific form (DRC-01/DRC-07) in which it is issued.
  • Setting aside such a defective notice/order does not foreclose fresh action by the department; limitation is treated as not running against the department for the purpose of re-issuing a valid, signed notice or order after such vitiation.

Sections Involved

  • Section 73, CGST/TGST Act, 2017 — determination of tax not paid/short paid, the substantive provision under which the unsigned notices/orders were issued.
  • Rule 26(3), CGST Rules, 2017 — requirement of authentication (physical or digital signature) of notices, orders and communications.
  • Rule 142, CGST Rules, 2017 — issuance of summary of notice/order in Forms DRC-01/DRC-07 and, where applicable, DRC-01A.

Decision – In Favour of

Assessees/petitioners — all impugned unsigned notices and orders set aside, with liberty reserved to the department to proceed afresh.

Case Details

Court: High Court for the State of Telangana at Hyderabad. Case Nos.: W.P. Nos. 14877, 15541, 15554, 15571, 15575, 15614, 15632, 15824, 15847 and 15886 of 2025 (lead: W.P. No. 15541 of 2025 — M/s. South 6 Enterprises). Coram: Hon'ble the Acting Chief Justice Sujoy Paul and Hon'ble Smt. Justice Renuka Yara. Date of Order: 19 June 2025.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.