Court mandates reassessment and allows delay in petition filing with conditions under the new GST regime.
In a significant judgment, the Andhra Pradesh High Court has set aside an assessment order under the Goods and Services Tax (GST) regime, citing the absence of a signature by the assessing officer, thereby rendering the order invalid. The case, titled "Nominee Works Committee Kalavalla v. Deputy Assistant Commissioner STII," was adjudicated by a division bench comprising Justices R. Raghunandan Rao and T.C.D. Sekhar.
The petitioner, Nominee Works Committee Kalavalla, challenged the assessment order dated July 25, 2023, which was issued without the mandatory signature of the assessing officer. The court reiterated its stance, referencing previous judgments, that a signature on the assessment order is indispensable, and such an omission cannot be rectified under Sections 160 and 169 of the GST Act, 2017.
The court further addressed the issue of service of the assessment order. The petitioner argued that the order was not served in the conventional manner but was uploaded on the portal, which they could not access. While the respondents contended that uploading on the portal constitutes valid service under Section 169(1)(d) of the GST Act, the court recognized the practical challenges faced by taxpayers in accessing the GST portal, especially under the new online mechanisms introduced by the GST regime.
Acknowledging the hardships faced by taxpayers and the inherent defect in the assessment order, the court allowed for the delay in filing the writ petition, conditional upon the petitioner depositing 20% of the disputed tax within six weeks. The court emphasized balancing the difficulties faced by registered persons and the state's need for efficient tax administration.
The assessment order has been remanded to the assessing officer for fresh adjudication, allowing the petitioner an opportunity for a fair hearing. The court's decision underscores the importance of adhering to procedural requirements in tax assessments and reflects its sympathetic consideration of taxpayers' challenges in adapting to the GST regime.
Bottom line:-
Assessment order under GST regime - Absence of signature of assessing officer renders the assessment order invalid - Petitioners facing hardships due to new GST regime and online mechanisms - Delay in filing writ petition condonable subject to payment of 20% of disputed tax.
Statutory provision(s):
Goods and Services Tax Act, 2017 Sections 160, 169, 169(1)(d)
