Case Note & Summary
The Gujarat High Court allowed a writ petition filed by Petitioner challenging an Order-in-Original and show cause notice issued by the State Tax Officer under the Goods and Services Tax Act, 2017. The Court found that the respondents violated Section 129(3) of the GST Act by not complying with the seven-day limitation period for issuing notice and passing orders after detention of goods. The Court also noted that no personal hearing was afforded to the petitioner, and the order was uploaded on the portal after a delay of one month without explanation, violating Rule 142(5) of the GST Rules. The Court quashed the impugned order and notice, setting them aside without remanding the matter back to the authorities.
Headnote
The High Court of Gujarat at Ahmedabad allowed a writ petition challenging an Order-in-Original dated 25.08.2025 and show cause notice dated 27.09.2025 issued under the Goods and Services Tax Act, 2017 -- The Court held that the respondents violated Section 129(3) of the GST Act by failing to comply with the seven-day limitation period for issuing notice and passing orders -- The Court noted that the affidavit-in-reply was silent on the limitation period prescribed under Section 129 -- The Court found that no personal hearing was afforded to the petitioner before passing the ex-parte Order-in-Original -- The Court observed that Rule 142(5) of the GST Rules, 2017 mandates uploading of orders on the portal, but the respondents failed to explain the belated uploading after one month -- The Court relied on the Supreme Court judgment in ASP Traders vs. State of Uttar Pradesh, (2025) 176 taxmann.com 782(SC) -- The Court quashed and set aside the impugned order and notice on two counts: (a) no explanation for belatedly uploading the order after one month, and (b) no personal hearing afforded to the petitioner -- The Court declined to remand the matter to the respondent authorities given the peculiar facts of the case
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Issue of Consideration: The Issue of whether the impugned Order-in-Original dated 25.08.2025 and show cause notice dated 27.09.2025 were valid given procedural violations under Section 129 of the Goods and Services Tax Act, 2017
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Final Decision
The Court allowed the writ petition, quashed and set aside the impugned show cause notice FORM MOV-7 and FORM MOV-9, made the rule absolute, and awarded no costs
