DRC-07 Without Digital Signature Is Invalid | HC

Case Details: Water Tech Engineers vs. Assisstant Commissioner of CGST - [2025] 175 taxmann.com 855 (Telangana)

Judiciary and Counsel Details

• Sujoy Paul, ACTG. CJ. & Smt. Renuka Yara, J.
• T.S. Murthy, Adv. for the Petitioner.
• Dominic Fernandes, Sr. Standing Counsel for the Respondent.

Facts of the Case

The petitioner challenged an assessment order issued under Section 74 of the CGST Act read with Section 122(2)(b), raising a tax demand on the ground that the Form DRC-07 notice uploaded on the portal lacked the digital signature of the Proper Officer. It was contended that such omission constituted a violation of the mandatory requirements prescribed under Rule 142(5) of the CGST Rules and Section 3 of the Information Technology Act, 2000. The petitioner submitted that the statutory framework mandates authentication of orders and notices by affixing the digital signature of the issuing authority, failing which such documents are rendered invalid. The jurisdictional officer under CGST filed a counter affidavit explaining the circumstances under which the unsigned Form DRC-07 was uploaded. The matter was accordingly placed before the High Court of Telangana.

High Court Held

The High Court of Telangana held that when the statute prescribes a specific manner for performing a statutory act, adherence to that manner is mandatory, and any deviation renders the act invalid. It was observed that the provisions under the CGST Act, the Telangana GST Act, and the corresponding Rules explicitly require that the Proper Officer digitally sign notices and orders, including Form DRC-07. The Court rejected the explanations offered by the Department, holding that such reasons cannot override the mandatory statutory requirement. Consequently, the impugned orders were set aside, while granting liberty to the revenue authority in terms of precedent.

List of Cases Reviewed

• Bigleap Technologies and Solutions (P.) Ltd. v. State of Telangana [2025] 172 taxmann.com 354 (TELANGANA) (para 8), followed.

List of Cases Referred to

• Bigleap Technologies and Solutions (P.) Ltd. v. State of Telangana [2025] 172 taxmann.com 354 (TELANGANA) (para 3).