M/S ASP TRADERS versus STATE OF UTTAR PRADESH & ORS.

M/S ASP TRADERS versus STATE OF UTTAR PRADESH & ORS.

Where objections have been filed and payment of tax and penalty is stated to have been made under protest or due to business exigencies, the proper officer is statutorily obliged to pass a reasoned final order under section 129(3) (in Form GST MOV-09) and upload a summary in Form GST DRC-07; the deeming fiction in section 129(5) does not eliminate this duty and failure to pass such an order deprives the taxpayer of the statutory right of appeal and may violate Article 265.

Parties
Appellant: M/s ASP Traders; Respondent: State of Uttar Pradesh & Ors.
Jurisdiction
India
Judgment Date
24 July 2025
Procedural Posture
Civil Appeal / Appeal to the Supreme Court From High Court Judgment in Writ Tax No.955 of 2022
Outcome
Appeal allowed
Legal Topics
Section 129(3) and 129(5) of the CGST Act, 2017, Detention, Seizure and Release of Goods in Transit, Requirement of Reasoned Order and Right to Appeal Under Section 107 CGST Act, Payment Under Protest and Waiver/acquiescence, Article 265 of the Constitution of India
Taxation Constitutional Law Administrative Law Section 129(3) and 129(5) of the CGST Act, 2017 Detention, Seizure and Release of Goods in Transit Requirement of Reasoned Order and Right to Appeal Under Section 107 CGST Act, 2017 Payment Under Protest and Waiver/acquiescence Article 265 of the Constitution of India

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Parties

M/s ASP Traders

Appellant

State of Uttar Pradesh & Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal to the Supreme Court From High Court Judgment in Writ Tax No.955 of 2022

Legal Issues

  1. 1 Whether payment of tax and penalty within the time stipulated in the notice under section 129(3) absolves the proper officer of the statutory duty to pass a final reasoned order under section 129(3) or whether the deeming fiction in section 129(5) concludes proceedings without such an order
  2. 2 Whether payment made under commercial compulsion or under protest can be treated as voluntary and as a waiver of the right to challenge the levy
  3. 3 Whether failure to pass a reasoned order deprives the taxpayer of the statutory right of appeal and violates principles under Article 265

Ratio Decidendi

Where objections have been filed and payment of tax and penalty is stated to have been made under protest or due to business exigencies, the proper officer is statutorily obliged to pass a reasoned final order under section 129(3) (in Form GST MOV-09) and upload a summary in Form GST DRC-07; the deeming fiction in section 129(5) does not eliminate this duty and failure to pass such an order deprives the taxpayer of the statutory right of appeal and may violate Article 265.

Court Disposition

Appeal allowed

Orders

  • Impugned order of the High Court dated 18.07.2022 is set aside
  • Respondent No.3 is directed to pass a reasoned final order under section 129(3) of the CGST Act, 2017 in Form GST MOV-09 after granting opportunity of hearing as mandated by section 129(4) and upload the summary in Form GST DRC-07 within one month from receipt of a copy of this judgment