Unsigned GST Orders Invalid: Jharkhand HC Quashes Assessment Without Digital Signature

Case Details:
Case Title: Sadanand Prasad Barnwal v. State of Jharkhand & Ors.
Court: High Court of Jharkhand, Ranchi
Petition No.: W.P.(T) No. 423 of 2025
Date of Judgment: 08.05.2025
Relevant Section: Section 73 of the Jharkhand GST Act
Category of Dispute: Procedural Validity of Demand / Assessment Order
Bench: Hon’ble Chief Justice M.S. Ramachandra Rao and Hon’ble Mr. Justice Rajesh Shankar

🧾 Facts of the Case

[Para 1-2]:

• The petitioner, a sole proprietor, challenged the GST proceedings initiated against him.

• He was served with a summary show cause notice in Form GST DRC-01 dated 31.05.2024 and a subsequent order under Section 73 dated 28.08.2024, both of which lacked the digital signature of the Proper Officer (Respondent No. 4).

❓ Question(s) in Consideration

[Para 2]:

• Whether the absence of a digitally signed summary show cause notice and order under Section 73 renders the proceedings invalid?

🧷 Observations of the Court

[Para 2]:

• The Court relied on its prior decision in Rajendra Modi v. State of Jharkhand (W.P.(T) No. 1354 of 2025, decided on 21.03.2025) where it had held that an unsigned or undigitally signed GST DRC-01 and subsequent order is a violation of legal procedure.

• The rationale is that digital signature authenticates the document and absence thereof compromises legality.

⚖️ Judgement of the Court

[Para 2-3]:

• The summary of show cause notice in DRC-01 and the order dated 28.08.2024 are declared invalid and set aside.

• Liberty granted to the department to initiate fresh proceedings, if permissible under law.

🔍 Between Fine Lines:

1. Any GST demand order under Section 73 must be digitally signed by the proper officer.

2. Failure to do so results in invalidation of the entire proceeding.

3. This ensures authenticity, traceability, and adherence to natural justice.

4. However, the department may restart the process if within limitation and lawful.

5. This reinforces the need for strict procedural compliance under GST.

📚 Summary of Referred Cases

Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”