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

[Padmanathan KV]

Non-issuance of GST MOV-07 and MOV-09 is clear violation of principles of natural justice, provisions of section 129 as well as circular issued by CBIC.

Summary in DRC-01 and DRC-07 prescribed in the Rules does not substitute the SCN and order itself.

File a writ before the jurisdictional High Court and you may be able to get the entire proceedings quashed.

AI Summary

Penalty proceedings under GST require issuance of prescribed MOV notices; summaries cannot replace formal show cause notice or recovery order. Penalty proceedings under Section 129 based solely on DRC-01/DRC-07 summaries without issuance of prescribed MOV-07 notice and MOV-09 order violate principles of natural justice and statutory procedure; summaries do not substitute for a formal show cause notice or recovery order, and a writ petition before the High Court may be the appropriate remedy to quash proceedings initiated on that basis.