S.A. Sugandh Private Limited Vs Chief Commissioner of CT & GST (Orissa High Court)
In the case of S.A. Sugandh Private Limited vs. Chief Commissioner of CT & GST, the petitioner challenged the demand of tax and penalty issued by the authorities. The impugned demand, dated 11th September 2024, was preceded by a detention order dated 30th August 2024, and the notice was issued the following day, 31st August 2024. The petitioner’s senior advocate referred to a previous judgment (W.P. (C) no. 21541 of 2024), where the court had ruled that a demand issued beyond seven days from the date of the notice is impermissible. In this case, the demand was made well beyond the prescribed seven-day limit, and hence, the petitioner sought the quashing of the demand.
The revenue’s counsel presented a “datewise movement of the detained vehicle,” but the court observed that the timeline of issuing the demand clearly violated Section 129 of the Odisha Goods and Services Tax Act, 2017, which mandates that the demand should be made within seven days from the issuance of the notice. In light of this, the Orissa High Court ruled in favor of the petitioner, setting aside the GST demand and penalty. The writ petition was allowed and disposed of accordingly. This judgment reinforces the importance of adhering to legal timelines for issuing demands under GST law.
