Facts of the Case

Eight connected writ petitions, led by M/s. Sri Thirumala Industries, challenged show-cause notices and assessment orders (Forms GST DRC-01/DRC-07) issued under Section 73 of the CGST/TGST Act, 2017 for tax periods spanning 2018-19 to 2019-20, along with consequential bank attachments, on the ground that the notices and/or orders bore no physical or digital signature of the issuing officer, with some petitioners additionally alleging non-issuance of the mandatory intimation in Form GST DRC-01A under Rule 142(1A) 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 and disposed of it by common order on 27 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, are valid.
  2. Whether non-issuance of the pre-notice intimation in Form GST DRC-01A under Rule 142(1A) independently vitiates the subsequent proceedings.
  3. Whether bank attachments made pursuant to such defective notices/orders must be revoked.

Petitioner's Arguments

  • The show-cause notices in Form GST DRC-01 and the consequent assessment orders in Form GST DRC-07 for the respective tax periods carried no physical or digital signature of the issuing officer, rendering them unenforceable and non-est in law.
  • In at least one connected matter, the assessing officer failed to issue the mandatory pre-notice intimation in Form GST DRC-01A as required by Rule 142(1A) of the CGST Rules, 2017, before proceeding to issue the show-cause notice.
  • Sought quashing of the notices, orders and consequential bank attachments/garnishee notices as illegal, arbitrary, without jurisdiction and violative of Articles 14, 19(1)(g), 21 and 265 of the Constitution.

Respondent's Arguments

  • Learned Assistant Government Pleader for State Tax, representing the Special Government Pleader, conceded that since the impugned notices and/or orders were unsigned, they were liable to be set aside in view of the Court's earlier common order in W.P.No.21101 of 2024 and batch, dated 28.02.2025.
  • No independent defence was pressed to sustain the unsigned notices/orders.

Court Order / Findings

  • The Court accepted the joint submission that, given the similarity of the questions involved, the eight writ petitions could be analogously heard and decided by a common order.
  • An unsigned show-cause notice or assessment order under the CGST/TGST Act is non-est in law and must be set aside along with any consequential bank attachment, consistent with the Court's earlier ruling in W.P.No.21101 of 2024 and batch; this leaves the department free to issue a fresh, properly signed notice or order.
  • The impugned notices and orders across all eight connected writ petitions were set aside, and consequential bank attachments, where issued, stood revoked.
  • Liberty was reserved to the respondents to issue fresh show-cause notices/orders in accordance with law, with limitation not to operate as a hurdle for the department; the petitions were disposed of without costs and without any opinion on merits.

Important Clarification

  • The requirement of physical or digital signature on a GST show-cause notice and assessment order is not a mere formality — its absence renders the notice/order non-est, warranting it to be set aside regardless of the tax period or the specific defect additionally alleged, such as a missing DRC-01A.
  • As with other unsigned-notice batches decided by the same Bench, setting aside the defective notice/order does not bar the department from re-issuing a valid one, and limitation is treated as not running against the department for that purpose.

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 (signature) of notices, orders and communications.
  • Rule 142(1A), CGST Rules, 2017 — pre-notice intimation in Form GST DRC-01A, alleged to be missing in one of the connected matters.

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. 16805, 16879, 16891, 16929, 16935, 16952, 16953 and 16967 of 2025 (lead: W.P. No. 16805 of 2025 — M/s. Sri Thirumala Industries). Coram: Hon'ble the Acting Chief Justice Sujoy Paul and Hon'ble Smt. Justice Renuka Yara. Date of Order: 27 June 2025.

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