Detention Order and Notice passed beyond Time Period mentioned u/s 129 of GST Act is Invalid: Madras HC quashes Proceedings [Read Order]

The Madras High Court, has quashed the proceedings under the provisions of section 129 of the Central GST Act, 2017, has considered the fact that the time limit mentioned in the provision was not followed while passing the show-cause notice and the detention order.

The petitioner, A. Irudayaraju had transported a second hand Tata Hitachi Excavator that had been intercepted on 01.08.2022 at 11.20 p.m. at Ammapet Bye Pass junction, Salem. The statement of the driver of the vehicle in Form GST MOV01 was recorded on the same day. Simultaneous therewith, Form GST MOV02, being an order of physical verification was issued, also dated 01.08.2022 along with report of physical verification in Form GST MOV-04.

The Petitioner contended that there was no permission sought and received in Form GST MOV-03 for the extension of the 3 day period for issuance of order in Form GST MOV-02. According to them, there was no order of detention that was passed in this case within the period as provided for under Section 129 and neither was a show cause notice issued within the period of 7 days as set out under Section 129(3) of the Act.

After perusing the facts and the documents, Justice Anita Sumanth observed that “In this case, admittedly, neither order of detention nor show cause notice have been issued in time. The date of interception of vehicle is 01.08.2022 and the order of detention has been passed only on 11.08.2022. The show cause notice has been issued on 16.08.2022. The timelines as set out under Section 129 are completely vitiate the proceedings in full.”

Quashing the proceedings, the Court held that “the petitioner in its reply filed on the same day has specifically made reference to the order in this case of D.K.Enterprises (supra) and has also referred to the statutory timeline under Section 129 of the Act. Thus, it was incumbent upon the authority to have taken note of the same. This has not been done.”

To Read the full text of the Order CLICK HERE

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