Penalty Proceeding u/s 129 without issue of notice in Mov-07

[ajay chharia]

1. Can Penalty Proceeding u/s 129 be started on the basis of GST DRC-01(summary of show cause notice) without issue of GST MOV-07-notice as prescribed vide Circular No.41/15/2018-GST dated 13th April,2018?

2. Officer has issued only summary of order in GST DRC-07, no order has been issued in GST MOV-09 as prescribed. Is it valid order for recovery of demand

AI Summary

Penalty Proceedings Under Section 129 of GST Act Questioned Due to Lack of Proper Notices and Violations of Natural Justice A query was raised regarding the validity of penalty proceedings under Section 129 of the GST Act initiated without issuing the prescribed GST MOV-07 notice, relying instead on a summary of a show cause notice (GST DRC-01). Additionally, only a summary order (GST DRC-07) was issued, without the formal order (GST MOV-09). The response highlighted that this approach violates principles of natural justice and the provisions of Section 129, as well as CBIC circulars. It was suggested to file a writ in the jurisdictional High Court to potentially quash the proceedings.