M/s ASP TRADERS

Vs.

STATE OF U.P & ORS.

CIVIL APPEAL NO. 9764 OF 2025 [Arising out of S.L.P. (C) No. 17995 of 2022] 

HIGH COURT: Supreme Court

DATED: 24.07.2025

Citation: 2025 Taxo.Online 1599

Final order under Section 129(3) mandatory despite payment under protest, where objections are filed.

Detention of goods – Goods released upon payment of tax and penalty under protest – No final order passed under Section 129(3) of CGST Act neither uploaded summary in Form GST DRC-07 – Violation of Rule 142(5) and Circular 41/15/2018-GST dated 13.04.2018 – Deeming fiction i.e proceedings deemed to be concluded upon payment of tax and penalty under Section 129(5) does not absolve responsibility of proper officer to pass order concluding proceedings – Objections filed by appellant and once objections filed adjudication is not optional – Respondents claim objections orally withdrawn and payment made voluntarily by petitioner, no written material on record to substantiate same – Failure to pass speaking order violates principles of natural justice and Section 129(4)  and deprives petitioner of right to appeal under Section 107 – High Court erred in rejecting relief to petitioner – Court held deeming provision under Section 129(5) only concludes prosecution proceedings and cannot override obligation to adjudicate where objections raised

Held: Appeal allowed – High court order set aside – Respondent to pass final order under Section 129(3) after hearing and upload summary within one month .

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