Telangana HC allows delayed GST appeal despite challenge to unsigned SCN & order

Vinayaka Restaurant & Bar Vs Assistant Commissioner (ST) (Telangana High Court)

Introduction

In this procedural ruling, the Telangana High Court dealt with a challenge to GST proceedings on the ground of improper authentication of notices and orders. While the petitioner questioned the validity of unsigned documents, the Court chose not to examine the merits and instead directed the taxpayer to pursue the statutory appellate remedy with a delay condonation request.

Case Background

• The petitioner, M/s. Vinayaka Restaurant & Bar, challenged:
  • Show Cause Notice dated 15.11.2021 (Form DRC-01), and
  • Order dated 29.12.2023 passed under Section 73 of the GST Act.
• The dispute related to:
  • Tax period 2017-18.
• Key contention:
  • The SCN and order were not authenticated by:
    • Physical signature, or
    • Digital signature,
      as required under Rule 142 read with Rule 26(3) of the CGST Rules, 2017.
• The petitioner claimed that:
  • It became aware of the proceedings only when its bank account was frozen (lien marked).

Key Legal Issue

Whether GST proceedings can be challenged due to lack of proper authentication (signature) and whether such challenge can bypass statutory appeal despite delay.

Arguments Presented

Petitioner

• Argued that:
  • The SCN and order are invalid due to absence of authentication.
• Submitted that:
  • The proceedings came to notice only after bank account attachment.
• Sought:
  • Liberty to file appeal with condonation of delay.

Respondent (Department)

• Opposed the writ petition on:
  • Ground of delay in challenging the order.
• Relied on:
  • Supreme Court judgment in Assistant Commissioner (CT) LTU v. Glaxo Smith Kline Consumer Health Care Ltd.
• Contended that:
  • The writ petition should not be entertained due to belated challenge.

Court Observations

• The Court noted that:
  • The petitioner seeks to avail statutory appellate remedy.
• It refrained from:
  • Examining the validity of unsigned SCN/order.
• Held that:
  • Issues relating to authentication and delay should be examined by the appellate authority.

Final Judgment

• The writ petition was disposed of without adjudicating merits.
• Liberty granted:
  • The petitioner may file an appeal within 2 weeks.
• Conditions imposed:

1. Filing of delay condonation application.

2. Payment of statutory pre-deposit.