Mayur Timber Vs State of Rajasthan & Ors. (Rajasthan High Court)
Summary: The Rajasthan High Court allowed the writ petition filed by M/s Mayur Timber challenging the show-cause notice dated 13.06.2024 and consequential order dated 15.10.2024 passed under Section 74 of the CGST Act, 2017, whereby GST demand of Rs.3,13,894, interest of Rs.4,26,002 and penalty of Rs.3,13,894 had been confirmed on the allegation of ITC availment without actual receipt of goods. The Court found that the show-cause notice, reminder and adjudication order bore neither digital nor physical signatures. Examining Rule 26(3) of the CGST Rules, 2017, the Court held that electronic issuance and authentication are distinct and cumulative requirements and that mere generation of a document on the GST portal or allotment of a reference number cannot substitute authentication by signature.
A signature authenticates the document, fixes accountability on the issuing officer and safeguards against arbitrariness by evidencing application of mind. Consequently, an unsigned show-cause notice or order is no notice or order in the eyes of law, and the defect is not a curable irregularity but goes to the root of the authority to proceed. The Court further noted that the documents had been uploaded only under “Additional Notices and Orders”, the petitioner learnt about the demand only upon bank recovery proceedings, and no effective personal hearing had been afforded contrary to Section 75(4).
