Case Law Details
Tvl.V.V.Iron and Steels Vs State Tax Officer (Madras High Court)
Introduction: The Madras High Court recently addressed a crucial case involving Tvl.V.V.Iron and Steels challenging a notice issued under Section 129(3) of the CGST Act, 2017. The petitioner contested the timing of the notice, raising questions about adherence to statutory limitations.
Detailed Analysis: The petitioner argued that the notice (Form GST Mov-07) dated 05.09.2023, issued in response to the interception of goods/conveyance on 30.08.2023, violated the seven-day limitation prescribed by Section 129(3). The petitioner received the notice on 08.09.2023, beyond the stipulated timeframe.
The court considered the respondent’s claim that the notice was dispatched via e-mail on 07.09.2023, and simultaneously affixed to the vehicle. However, the petitioner contended that the notice had to be served within seven days from the date of detention or seizure, which should be calculated from the intended seizure date, not the following date.
Section 129(3) of the TNGST Act, 2017, was pivotal in the court’s decision. It explicitly mandates the issuance of a notice within seven days of detention or seizure, specifying the penalty payable. The court emphasized the clear language of the section, underscoring that the seven-day period starts from the intended seizure date, not the subsequent day.
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