he Hon’ble Gujarat High Court in the case of Trillion Lead Factory Private Limited v. The State Tax Officer – ENF DIV-2 & Anr. [R/Special Civil Application No. 17445 of 2025, order dated January 08, 2026] held that proceedings under Section 129 of the GST Act are vitiated where the order and notice are uploaded belatedly on the GST portal without explanation, in violation of Rule 142(5) of the GST Rules, 2017, and where no opportunity of personal hearing is granted before passing the order, and accordingly quashed the notice and order in entirety.
Facts:
Trillion Lead Factory Private Limited (“the Petitioner”) is a registered assessee whose conveyance was intercepted on 19.08.2025, and whose goods and conveyance were detained on 22.08.2025 under FORM GST MOV-06.
The State Tax Officer (“the Respondent”) detained the goods and conveyance under Section 129 of the GST Act and passed an Order-in-Original in FORM GST MOV-09, which, though stated to be dated August 25, 2025, was uploaded on the GST portal only on September 27, 2025.
The Petitioner contended that the impugned order and show cause notice were passed beyond the statutory timelines prescribed under Section 129(3) of the GST Act, that no proper show cause notice in FORM GST MOV-07 was served, that the statutory forms suffered from serious discrepancies including absence of signatures, and that no personal hearing was granted prior to passing the order.
The Respondent contended that since the owner of the goods came forward to pay the tax and penalty, there was no necessity to strictly adhere to the seven-day timeline under Section 129(3), and further that the Order – in – Original was also subsequently uploaded on the portal on September 27, 2025.
Aggrieved by the belated uploading of the order, alleged breach of statutory timelines, and denial of personal hearing, the Petitioner approached the High Court challenging the notice and order passed under Section 129 of the GST Act.
Issue:
Whether proceedings under Section 129 of the GST Act are sustainable where the order and notice are uploaded belatedly on the GST portal without explanation and where no opportunity of personal hearing is granted to the assessee?
Held:
The Hon’ble Gujarat High Court in R/Special Civil Application No. 17445 of 2025 held as under:
- Observed that, the affidavit-in-reply filed by the Respondents is blissfully silent with regard to the limitation period prescribed under Section 129 of the GST Act of communicating the order in Form GST MOV-09 within the period of seven days.
- Noted that, although the order and notice are stated to be dated August 25, 2025, they were uploaded on the GST portal only on September 27, 2025, and no explanation was tendered for such belated uploading.
- Observed that, Rule 142(5) of the GST Rules, 2017 mandates that the order passed under Section 129 and FORM GST MOV-07 are required to be uploaded on the portal.
- Noted that, it is admitted in the affidavit-in-reply that no opportunity of hearing was offered to the petitioner while passing the order under Section 129(3) of the GST Act.
- Observed that, the alleged issuance and service of FORM GST MOV-07 and FORM GST MOV-09 on August 25, 2025 appeared doubtful in light of discrepancies in statutory forms and the transporter’s affidavit stating that signatures were taken on blank papers.
- Held that, both the unexplained belated uploading of the notice and order and the ex-parte nature of the proceedings strike at the root of the statutory scheme under Section 129 of the GST Act.
- Directed that, in view of the peculiar facts of the case, the Court is not inclined to remand the matter, and the impugned show cause notice and order are quashed and set aside in entirety.
Our Comments:
The High Court examined compliance with Section 129(3) of the GST Act and Rule 142(5) of the GST Rules, 2017, and held that the statutory requirement of timely issuance and electronic uploading of notices and orders is mandatory. The Court relied upon the ratio of the Supreme Court in ASP Traders v. State of Uttar Pradesh [(2025) 176 taxmann.com 782 (SC)] which emphasised strict adherence to the procedure and timelines prescribed under Section 129, including issuance of notice in FORM GST MOV-07 and grant of opportunity to the assessee.
The Court found that the Respondents’ affidavit candidly admitted non-grant of personal hearing and failed to explain the delay of over one month in uploading the order on the portal, thereby rendering the proceedings unsustainable. The reasoning adopted aligns with the statutory mandate that proceedings under Section 129 must strictly conform to prescribed forms, timelines, and principles of natural justice.
Relevant Provisions:
Section 129(3) of the Central Goods and Services Tax Act, 2017
“129. Detention, seizure and release of goods and conveyances in transit.-
(3) 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).”
Rule 142(5) of the Central Goods and Services Tax Rules, 2017
“142. Notice and order for demand of amounts payable under the Act. –
(5) A summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 74A or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty, as the case may be, payable by the person concerned”
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