GST Authorities Cannot ‘Shy Away’ from Issuing Form GST MOV-09 when Amount Paid under Protest or Not: Allahabad HC [Read Order]

The Allahabad High Court has held that GST ( Goods and Services Tax ) authorities cannot avoid issuing Form GST MOV-09, irrespective of whether the penalty amount under Section 129 of the CGST Act is deposited under protest or without protest.

The Bench comprising Justice Saumitra Dayal Singh and Justice Indrajeet Shukla noted the case M/s Aries Agro Limited Vs. State of Uttar Pradesh and others, where it was observed that “Once the amount has been deposited under protest and even if the same was not deposited under protest, the authorities cannot shy away from passing order of penalty under Form GST MOV-09. Unless the penalty order is passed by the authorities, the parties are deprived of challenging the action of the respondents and therefore, they cannot be deprived of their right to file appeal.”

The writ petition was filed by M/s Uflex Limited, which challenged the order dated 22 March 2024 refusing to issue MOV-09 despite the petitioner having deposited the demanded amount for release of goods.

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The petitioner argued that the penalty was paid only to secure release of goods and that both the law and Circular No. 41/15/2018-GST dated 13 April 2018 require issuance of MOV-09 at the conclusion of proceedings under Section 129.

During the hearing, counsel for Uflex relied on the Allahabad High Court’s earlier judgment in M/s Aries Agro Limited v. State of Uttar Pradesh (30 April 2025), wherein the Division Bench had held that non-issuance of MOV-09 is impermissible, as MOV-09 constitutes the operative penalty order under Section 129(3).

In that case, the Court expressly stated that authorities “cannot shy away” from passing MOV-09 even where the amount has been deposited under protest, because MOV-09 is the document that can be appealed against.

The Revenue initially argued that once the penalty had been deposited and goods released, issuance of MOV-09 was unnecessary.

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However, the Court noted that this argument had already been rejected by the Division Bench in Aries Agro, which held that payment of penalty whether voluntary, compulsory, or under protest does not extinguish the statutory duty to issue MOV-09.

The court, applying the earlier case squarely, quashed the impugned order, as well as the letter/decision and Form DRC-05, and directed the proper officer to issue Form GST MOV-09 within three weeks from the date of the order.

Thus, the high court clearly clarified that Form GST MOV-09 must be issued to the taxpayer who paid the penalty under protest or not. If not issued, then it would deprive the taxpayer’s right to appeal.

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