In a significant judgment impacting GST compliance, the Telangana High Court has ruled that unsigned GST showcause notices and demand orders are invalid and unenforceable under law. A two-judge bench comprising Acting Chief Justice Sujoy Paul and Justice Renuka Yara delivered this ruling while allowing a series of writ petitions that challenged the legality and validity of such documents.
The petitioners, represented by a range of legal experts specializing in tax law, argued that the lack of physical or digital signatures rendered the GST notices unauthenticated and void, constituting a substantive legal defect rather than a mere technical lapse. The court concurred, stating that a document that is statutorily required to carry a signature cannot be considered valid if this requirement is not met.
On the other hand, GST authorities contended that the posting of documents on the GST portal was sufficient for legal validity, claiming that the GST Act, 2017, and the relevant rules do not explicitly mandate the inclusion of a signature. The Revenue further argued that taxation statutes must be strictly interpreted, and in their view, the absence of express mention of a signature meant it was not compulsory.
However, the High Court firmly disagreed. The bench emphasized that if a specific column in the statutory GST forms is dedicated for a signature, then its inclusion becomes a mandatory statutory requirement. The acting Chief Justice quoted the established legal principle: “If a law prescribes a thing to be done in a particular manner, it must be done in that manner alone, and no other method is acceptable.”
Consequently, the High Court set aside the impugned GST notices and final orders. Importantly, the judgment grants liberty to the GST authorities to issue fresh showcause notices and orders, ensuring that procedural requirements, including the mandatory signature, are fully complied with. The court also clarified that limitation will not act as a barrier for reissuing such notices.
This ruling is likely to have wide implications for GST litigation across India, as it underscores the necessity of adhering strictly to procedural norms laid down in the GST Act and Rules.