Kedia Enterprises Vs State of Bihar (Patna High Court)
In the case of Kedia Enterprises vs. State of Bihar, the Patna High Court quashed an order issued under Section 129(3) of the Central Goods and Services Act, 2017. The petitioner challenged the legality of the order, arguing that it was issued beyond the statutory seven-day period mandated by the Act following the issuance of Notice MOV 07. The court noted that the goods carried by the petitioner’s vehicle were detained on March 30, 2024, and the notice was served on April 4, 2024. According to Section 129(3), the order must be passed within seven days from the date the notice was served.
The petitioner contended that since the order was issued on April 18, 2024—well beyond the required timeframe—it violated the provisions of the Act. The petitioner had filed their response on April 12, 2024, after receiving a notice that allowed them until April 11, 2024, to reply. The fact that April 11 was a public holiday meant the reply was submitted on the next working day, and thus, the order should have been passed on that day. The petitioner referred to a previous judgment (Pawan Carrying Corporation vs. Commissioner CGST & Central Excise) to support their argument that a penalty order issued beyond the limitation period is invalid.
