Facts of the Case:
In this case, the petitioner challenged the validity of the Show Cause Notice issued in FORM GST MOV-07 and the Order-in-Original passed in FORM GST MOV-09, arising out of detention of goods and conveyance under Section 129. The conveyance was intercepted on 19.08.2025, and the goods along with the conveyance were formally detained on 22.08.2025 vide FORM GST MOV-06. The petitioner paid the demanded tax and penalty , upon which the goods and conveyance were released.
However, it was contended that no show cause notice under Section 129(3) was properly issued or served within the statutory time limit. The alleged MOV-07 and MOV-09, though stated to be dated 25.08.2025, were uploaded on the GST portal only on 27.09.2025, i.e., after nearly one month. No personal hearing was granted to the petitioner prior to passing the order. The prescribed format of MOV-07 was not adhered to, and MOV-09 bore no signature of the person in charge of the conveyance. The respondents justified the delay by contending that once the owner paid the penalty, there was no urgency in passing or uploading the order within seven days.
Issue:
Whether detention proceedings under Section 129 of the GST Act are sustainable when the notice and order are not issued, served, and uploaded within the mandatory time limits prescribed under Section 129(3) read with Rule 142(5); and the order is passed without granting personal hearing, thereby violating principles of natural justice.
Held that:
The High Court allowed the writ petition and quashed both FORM GST MOV-07 and FORM GST MOV-09, holding as under –
- The statute clearly requires issuance of notice within seven days of detention and passing of the order within seven days from service of notice. The respondents failed to explain the belated uploading of the notice and order after more than one month, rendering the proceedings unsustainable.
- The statute clearly requires issuance of notice within seven days of detention and passing of the order within seven days from service of notice. The respondents failed to explain the belated uploading of the notice and order after more than one month, rendering the proceedings unsustainable.
- Non-grant of personal hearing before passing the Order-in-Original was admitted by the respondents and constituted a clear violation of principles of natural justice, further vitiating the proceedings.
- Rule 142(5) mandates uploading of orders passed under Section 129 on the GST portal, and failure to do so within a reasonable and prescribed timeframe undermines the legality of the proceedings.
Accordingly, the impugned show cause notice and order were quashed and set aside, and the writ petition was allowed.
Case Name: Trillion Lead Factory Private Limited Versus The State Tax Officer – Enf Div-2 & Anr. dated 08.01.2026
To read the complete judgement 2026 Taxo.online 139
