Tag: Time Limit for issue of Order

Detention – Order passed after 7 days of Notice is Set Aside

Citation:

S.A. Sugandh (P.) Ltd. vs. Chief Commissioner of CT & GST

[2025] 170 taxmann.com 518 (Orissa)[12-12-2024]

W.P.(C) No.31019 of 2024

High Court of Orissa

Provision Involved:

Section 129(3) (w.e.f. 1st January 2022) states that “The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty under clause (a) or clause (b) of sub-section (1)”

Facts:

In the present case, the detention order is dated 30th August 2024, Notice is issued on 31st August 2024, but the Order for demand was made on 11th September 2024, which is beyond 7 days from the date of issue of Notice.

Since the Order for demand was made outside the limits of Section 129(3), the Impugned Order was Set aside.

Decisions Referred to:

RSL Overseas LLP vs. State of Odisha

[2024] 168 taxmann.com 46 (Orissa)[03-09-2024],

wherein it was held that if the notice for detention or seizure of goods was issued (on 14th August 2024) within 7 days from the next day of such detention (made on 7th August 2024), it was valid.

Show Cause Notice and Order are issued on the same date – Order Set Aside

In the case of Pithamber Distributors Vs. Assistant Commissioner (ST) W.P. No. 11337 of 2024, [2024] 162 taxmann.com 630 (Madras), Impugned Order and the Show Cause Notice, both were issued on 31/12/2023.

Petitioner has submitted that:

  1. The facts speak of themselves and the order and SCN are issued on the same date (Opportunity of being heard is not provided)
  2. SCN was issued in breach of Section 73(2) of CGST Act, 2017 (SCN needs to be issued at least 3 months prior to the time-limit for issue of order u/s. 73(10), which is 3 years from the due date for furnishing Annual Return)

Hon’ble High Court of Madras has held that:

  1. The contention of the petitioner that a reasonable opportunity was not provided is liable to be accepted. Since both the show cause notice and impugned order were issued on the same date, the impugned order is unsustainable.
  2. Consequently, impugned order dated 31.12.2023 is set aside by leaving it open to the respondent to initiate proceedings in accordance with law.