High Court sets aside unsigned showcause notices, says signature is a statutory requirement
Hyderabad: A two-judge panel of the Telangana High Court held that unsigned showcause or demand notices by the GST authorities are unsustainable in law. A panel comprising acting Chief Justice Sujoy Paul and Justice Renuka Yara allowed a batch of petitions challenging the legality, validity and propriety of the showcause notices and final orders, which admittedly did not contain physical or digital signatures of the officer, although they were uploaded on the portal. The case of the revenue was that the absence of a signature would not cause any dent to the showcause notices or orders, if the scheme of the Central Goods and Services Act, 2017 (GST Act) and the Central/Telangana State Goods and Services Rules, 2017 (GST Rules) were examined. The respondent further contended that the taxation statute must be construed strictly. Thus, by inferential process, a fiscal statute cannot be interpreted in a way that is neither intended nor expressed. A plain reading of relevant provisions of the GST Act, the GST Rules and forms makes it clear that there is no requirement to put a physical/digital signature and placing the document on the portal is sufficient. The batch of writ petitioners was represented by various counsel of the tax side. Both sections are silent about the requirement of a physical or digital signature and in that event, no rule can help the petitioners.
The petitioners in contra contended that the document was not authenticated in the absence of the signature. The defect in the showcause notices was substantive in nature and not merely a technical defect. When the impugned showcause notices and final orders were pregnant with such a serious inherent defect, they were liable to be set aside, the petitioners contended. Relying on the leading case in the matter, the court was of the considered opinion that the impugned order in the instant case, being an unsigned document, lost its efficacy under the GST Act and the GST Rules. Speaking for the panel, the acting Chief Justice also said, “We are constrained to hold that once there exists a specific column earmarked for the signature, the said requirement becomes a statutory requirement. For this reason, the argument that taxation statutes must be strictly interpreted based on the judgment of the Supreme Court is of no assistance to the respondents. Instead, it supports the contention of the petitioners. If a strict rule of interpretation is applied because of the statutory requirement of the existence of a signature in the statutory forms, it cannot be said non-existence of a signature will not cause any dent to the notice/order.” Finding it a prescription of the law that the taxing authority must affix his signature, the acting Chief Justice said this was trite that if a law prescribes a thing to be done in a particular manner, the same must be done in the same manner and other methods are forbidden. The impugned notices were set aside. Liberty was reserved to the respondents to issue fresh showcause notices/orders in accordance with law, and, for undertaking this exercise afresh, the limitation will not be a hurdle for the respondents.
Plea on cops’ refusal to permit fair
Justice Vijaysen Reddy of the Telangana High Court accepted a writ plea challenging the rejection of permission to organise the Telangana Trade Fair Exhibition at Jyothirao Phule Park Grounds (commonly known as Circus Grounds) in Karimnagar. The judge was dealing with a writ petition filed by Khaja Imtiyazuddin. The petitioner challenged the decision of the Karimnagar commissioner of police, declining permission to conduct the trade fair in April. The petitioner argued that the action was arbitrary. He also contended that his earlier representation was not considered. During the hearing, the judge, after initial submissions, directed the counsel for the police department to seek instructions. The petitioner urged the court to direct the concerned authorities to grant permission for the fair in the interest of public participation and regional trade promotion. The matter is posted for further adjudication.
