TVl. Udhayan Steels Private Limited Vs Deputy State Tax Officer (Int.) (Madras High Court)
Summary: The Madras High Court allowed the writ petition filed by TVl. Udhayan Steels Private Limited challenging the order dated 15.12.2022 passed by the Assistant Commissioner (ST), Adjudication, Coimbatore, and the connected detention order in Form GST MOV-06 dated 07.12.2022.
The petitioner challenged the proceedings on the ground that they were barred by the limitation prescribed under Section 129(3) of the GST Act, 2017. The provision prescribes timelines for issuance of notice and passing of the order concerning detention or seizure of goods or conveyance. The Court considered the statutory timeline in light of its earlier decision dated 10.10.2022 in W.P.No.25931 of 2022.
In that earlier matter, the Court had considered the scheme of events and timelines under Section 129 of the Act, referring to its decision in D.K. Enterprises v. The Assistant/Deputy Commissioner, W.P.No.22646 of 2022, order dated 29.08.2022. The Court had held that, since the statutory show cause notice was required to be issued within seven days from the date of interception, it was incumbent upon the authority to pass an order of detention prior thereto. Where both the detention order and show cause notice were issued beyond the stipulated timelines, the proceedings were held to be vitiated.
