The Madras High Court has ruled that failure to issue GST MOV-09 within seven days of the notice under Section 129(3) of the Goods and Services Tax ( GST Act ) renders the detention proceedings invalid.
A writ petition was filed challenging the issuance of GST MOV-02 and GST MOV-07, both dated October 29, 2024, and the absence of a corresponding GST MOV-09 order within the mandated timeline.
The petitioner, Madhesh argued that the goods were detained, and notice under Section 129(3) was issued on October 29, 2024. However, no detention order in Form GST MOV-09 was passed within the statutory seven-day period, as required under Section 129(3).
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The petitioner cited the precedents, including Tvl. Udhayan Steels Pvt. Ltd. v. The Deputy State Tax Officer (Int.) and other similar judgments, the petitioner contended that such a delay violated the Act’s provisions and invalidated the proceedings.
Justice Mohammed Shaffiq observed that complying to the timeline under Section 129(3) of GST Act is important. Any delay beyond the stipulated seven days undermines the legality of the detention proceedings.
The court set aside the impugned proceedings and ordered the immediate release of the detained vehicle and goods. The writ petition was disposed of.
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