2025 (7) TMI 982 - HC - GST

Challenge to impugned proceedings of the respondent in Form GST MOV-07 - direction to refund the penalty amount which was paid under protest through DRC 03 challan by the Petitioner - HELD THAT - Since the petitioner has already paid the amount and no final order has been passed till date the respondents are directed to pass a speaking order on merits pursuant to the impugned notice in GST MOV-07 dated 14.03.2025 after hearing the petitioner. The said exercise shall be completed within a period of four weeks from the date of receipt of a copy of this order. Petition disposed off.

Summary

The Madras High Court, through Justice C. Saravanan, addressed a writ petition challenging the respondent's proceedings in Form GST MOV-07 dated 14.03.2025 and seeking a refund of a penalty paid under protest via DRC 03 challan. The petitioner had paid the penalty under Section 129 of the Goods and Services Tax Act, 2017. The respondent relied on Section 129(5), which provides that "once the amount is paid, all proceedings in respect of the notice specified under Section 129(3)... shall be deemed to be concluded."Noting that no final order had been passed pursuant to the impugned notice and referencing prior interventions in similar cases, the Court directed the respondents to pass a "speaking order on merits" after hearing the petitioner, within four weeks from receipt of the order. The writ petition was disposed of accordingly, with no order as to costs.