Star Raison Landmarks vs. Chief Commissioner State Tax Commercial Taxes Department

Held

The High Court held that the show cause notice and Order-in-Original, being neither physically nor digitally signed, were non est in law as per the mandatory requirement of Rule 26(3) of the CGST Rules, 2017. This defect was jurisdictional and not a curable irregularity under Section 160. Consequently, the recovery notice and bank account attachment were also set aside, with liberty for the authorities to pass fresh, duly signed orders.

Facts

The petitioner challenged an unsigned show cause notice, the consequent Order-in-Original, and a recovery notice under Section 79 of the CGST Act, which led to the freezing of its bank account. The core grievance was that these statutory documents lacked both physical and digital signatures, rendering them non est in law. The initial challenge to various notifications and circulars was subsequently dropped.

Key Issues

The key legal issue was whether a show cause notice and an adjudication order, lacking both physical and digital signatures, could be sustained in law, and if such a defect was a mere irregularity or a jurisdictional flaw.