2024 (12) TMI 1124 - HC - GST

Andhra Pradesh High Court Overturns Penalty Order Over Goods Seizure, Citing Procedural Violations.

SFC Environmental Technologies Limited Versus Union Of India and Others

The HC of Andhra Pradesh annulled the penalty order against the petitioner concerning the seizure of goods during transit. The court identified procedural ... Levy of penalty - seizure of goods during transportation - opportunity of hearing was not provided - violation of principles of natural justice - HELD THAT:- In the present case, the show cause notice was issued on 29.10.2024, while the order of penalty was passed on 05.11.2024, within the aforesaid period of seven days provided under the notice issued to the Petitioner. Form GST MOV 07 issued under Section 129(3) of the CGST Act stipulates that time of seven days is given for answering the show cause notice - there is a clear procedural violation prescribed under the Act. Apart from the same, it would also amount to violation of principles of natural justice as adequate opportunity has not been given to the petitioner. The order of penalty, dated 05.11.2024, bearing GST MOV-07 passed by the 4th respondent is set aside and the matter is remanded back to the 4th respondent to pass necessary orders after due opportunity of hearing and opportunity of making out its case is given to the petitioner, in accordance with law. Petition allowed by way of remand. The High Court of Andhra Pradesh set aside the penalty order issued to a petitioner in a case involving seizure of goods during transportation. The court found a procedural violation and lack of natural justice in the case, remanding it back to the respondent for proper hearing. The writ petition was allowed with no costs.