M/S. Reserve Mines And Infra Private Limited vs. The Deputy Commissioner (St)

Facts

The petitioner, M/s. Reserve Mines and Infra Private Limited, filed a writ petition challenging an ex-parte assessment order passed by the Deputy Commissioner (ST) under Section 74 of the GST Act, 2017, for the Financial Year 2018-19. The petitioner contended that the order was passed without valid jurisdiction, contrary to law, violative of natural justice, and illegal. Specific grounds raised included the absence of ingredients for invoking Section 74, lack of a valid DIN, an invalid show cause notice issued without DIN and signature/digital signature, non-service of the show cause notice and reminders, and reliance on a single authorization. The impugned order was dated October 23, 2024, and was issued in Form DRC-07.

Held

The Court set aside the impugned notice and order. The reasoning was based on the submission by both the petitioner and the respondents that the impugned notice was unsigned. The Court referred to and followed a common order passed in W.P.No.21101 of 2024 & batch, dated February 25, 2025, which dealt with similar issues concerning unsigned notices. The Court explicitly stated that the impugned notice and order were set aside on this ground. The Court reserved liberty for the respondents to issue a fresh show cause notice/order in accordance with law, and importantly, clarified that limitation would not be a hurdle for the respondents in undertaking this fresh exercise. The Court explicitly stated that it was not expressing any opinion on the merits of the case.

Key Issues

1. Whether the ex-parte assessment order passed under Section 74 of the GST Act, 2017, is liable to be set aside for being issued without a valid DIN and signature/digital signature on the show cause notice and for non-service of the notice and reminders, thereby violating principles of natural justice? 2. Whether the assessment order is without jurisdiction and illegal due to the alleged absence of ingredients for invoking Section 74 of the GST Act, 2017? Petitioner's Arguments: The petitioner argued that the impugned assessment order and the preceding show cause notice were invalid because the notice was unsigned and lacked a valid DIN. They contended that these procedural infirmities rendered the entire process illegal and violative of natural justice. They relied on a common order passed in W.P.No.21101 of 2024 & batch, dated February 25, 2025, which dealt with similar issues. Respondents' Arguments: The learned Special Government Pleader for State Tax submitted that since the impugned notice was unsigned, the impugned order and the show cause notice could be set aside in view of the common order cited by the petitioner.