Order to Be Set Aside as Unsigned SCN Was Served Upon Assessee | HC

Case Details: Mintellectuals LLP vs. Union of India - [2025] 172 taxmann.com 130 (Delhi)

Judiciary and Counsel Details

• Pratibha M. Singh & Dharmesh Sharma, JJ.
• V Lakshmikumaran, Adv. for the Petitioner.
• Puneet Yadav, SPC. for the Respondent.

Facts of the Case

The assessee challenged an ex parte order passed under Section 73 of the CGST Act, 2017, contending that the show cause notice (SCN) leading to the order was unsigned and had not been properly served. The SCN and the impugned order were uploaded on the GST portal but lacked any digital or scanned signatures, raising questions about their validity. The assessee argued that an unsigned SCN is a procedural nullity, rendering the subsequent demand order void ab initio. Relying on judicial precedent, the assessee sought to have the impugned order set aside.

High Court Held

The Honourable High Court held that an unsigned SCN is legally defective and cannot sustain a demand order. It examined the SCN and confirmed that it lacked digital authentication, making it unenforceable. The Court referred to its earlier ruling in Marg ERP Ltd. v. Commissioner of Delhi GST [(2023) 151 taxmann.com 345 (Delhi)], which held that a show cause notice must bear a valid digital or scanned signature to be legally binding. Since the impugned SCN did not meet this requirement, the Court set aside the demand order and directed the authorities to grant the assessee an opportunity to file a reply to a properly issued SCN. The assessee was given four weeks, to submit its response, after which proceedings would continue in accordance with law.

List of Cases Reviewed

• Marg ERP Ltd. v. Commissioner of Delhi Goods & Service Tax – [2023] 151 taxmann.com 345 (Delhi) (para 8) followed.