Tenet Networks Private Ltd Vs GST Council and 3 others (Allahabad High Court)
The Allahabad High Court decided a writ petition challenging the rejection of a statutory appeal on the ground of delay under the provisions of the UPGST/CGST Act, 2017. The petitioner, engaged in the business of wireless networking and registered under the GST laws, had purchased wireless networking machinery valued at ₹26,25,000 from a supplier in Delhi. An e-way bill was generated on 20 July 2022 reflecting GST at 18%. The consignment was intercepted on 30 July 2022 by the Mobile Squad of the Sales Tax Department on the ground that Part-B of the e-way bill had not been filled by the transporter. Physical verification of the goods was carried out on the same date and no discrepancy was found. However, a notice in Form MOV-07 was issued on 1 August 2022 and on the same day a penalty order in Form MOV-09 was passed under Section 129(1)(a) of the Act imposing a penalty of ₹9,50,000. The petitioner contended that the order was passed ex parte.
According to the petitioner, although the penalty order dated 1 August 2022 was uploaded, the summary of the demand order in Form GST DRC-07 was uploaded only on 26 November 2022 after the petitioner requested the department to provide the document. The petitioner asserted that Form DRC-07 was a mandatory document required for filing an appeal against the order. After receiving the document, the petitioner filed a statutory appeal before the Additional Commissioner, Commercial Tax, Noida on 3 January 2023 (with hard copy filed on 9 January 2023), along with an application seeking condonation of delay.
