HC Cancels Tax Penalty Using MOV-09 Form as GST SCN Sent to Driver

A Single Bench of the Madras High Court denied the demand of Tax and Penalty in Form GST MOV-09 since the issue of Show Cause Notice (SCN) was incurred to the Driver of the Petitioner, Ramki Cements Private Limited.

The Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus, asking for the records on the respondent file, The State Tax Officer, Virudhunagarpertaining to the order of Demand of Tax and Penalty in Form GST MOV-09 and refuse that and consequently direct the respondent to discharge the goods of the applicant.

The applicant is the taxpayer on GST MOV-09. The applicant has made the same office recently and thereafter GST certificate was taken for the specified unit.

The applicant mentioned that by mistake, in the consignment, it was specified that it was transported to Chennai. Post blocking the consignment, a notice was being provided to the driver and that was not obtained via the applicant. Hence the applicant claims for that enough chance was not being provided to him.

The additional government pleader seems to appear for the respondent furnished that the notice was provided to the driver related to the consignment, that the same would be adequate under the provision of law, and moreover said that the e-mail was indeed being provided.

Recommended: CBIC Fresh Guidelines on Issuance of GST Show Cause Notices

The Coram consists of Justice S Srimathy who sees that “This Court is of the considered opinion that the petitioner was not given adequate opportunity. The petitioner has not received the show cause notice. The show cause notice issued to the driver is not adequate. Therefore, the order is liable to be set aside. Accordingly, the Writ Petition is allowed and the impugned order of Demand of Tax and Penalty in Form GST MOV-09 is hereby quashed.”

M.Sneha appeared for the petitioner, and M. Prakash, Additional Government Pleader appeared for the respondent.