2026-VIL-691-CAL
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SGST High Court Cases

GST - Distinction between "Issue" and "Service" under GST Law - Meaning of term "issue" in Section 73(10) of the CGST Act, 2017 - Statutory Interpretation of Taxing Statutes - Petitioner contended that an adjudication order under the GST Act was barred by limitation as it was not served to the taxpayer until after the extended deadline, even though it was digitally signed within the prescribed period - The order under Section 73 of the CGST Act, 2017 digitally signed on 30th April, 2024 was uploaded on 1st May, 2024 – Whether the order can be said to be validly issued within the period of limitation, having regard to the provisions contained in Section 73(10) of the CGST Act – HELD - Section 73 employs the expression “issue” in sub-sections (2), (9) and (10) thereof, while the word “service” is used in sub-section (1) of said Section as regards service of the show-cause notice. The legislature has used the words “issue” and “service” distinctly having regard to the nature of its requirement in the various sub-sections of the Section 73 while also providing for the manner in which such a notice and order is required to be served as provided for in Section 169 and under Rule 142 of the CGST Rules - The legislature deliberately used distinct terminology in the GST Act, employing "service" for show-cause notices under Section 73(1) but "issue" for orders under Sections 73(9) and 73(10), thereby indicating an intentional departure from Finance Act, 1994 and the Central Excise Act, 1944. The GST Act separates the act of issuance (determination and formal signing) from the act of service (communication via prescribed modes under Section 169) - Relying on the principle of strict construction of taxing statutes, the term "issue" means the official sending forth or promulgating of an order by digital signature, not its subsequent delivery or communication to the taxpayer. An order is complete for jurisdictional purposes upon issuance within the limitation period, regardless of when service occurs. The order digitally signed within the extended deadline was valid and enforceable despite being uploaded to the portal after the deadline – The writ petition is dismissed - Validity of Orders Signed within Limitation but Served After - Petitioner argued that the proper officer lacked competence to enforce an order that was served beyond the period of limitation prescribed under Section 73(10) of the CGST Act - Whether the statutory limitation period applies to the date of signing and issuance of an order or to the date of its communication to the taxpayer – HELD - The limitation period is confined to the act of issuance, not service. Since the order was digitally signed on the last day of the extended period of limitation, within the prescribed time, the officer vested with jurisdiction to issue the order. The subsequent uploading of the order and accompanying documents to the GST portal after the deadline does not invalidate or render the order void. The precedents under the Income Tax Act are distinguished as the GST Act employs different statutory language and structure. An order becomes enforceable upon issuance within the limitation period, and the mode, timing, or manner of subsequent service does not affect its validity or the authority's jurisdiction. The validity of the order is upheld.
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