Section 129 penalty order in MOV-09 without reasoned determination after effective hearing cannot stand; payment through DRC-03 to release goods is not a waiver of appeal: GSTAT Raipur

In two appeals, the Tribunal set aside unreasoned MOV-09 orders and remanded the matters to the original authority, confining the fresh adjudication to the allegation in the existing MOV-07 notice.

The Goods and Services Tax Appellate Tribunal, Raipur Bench, has set aside penalty orders under Section 129 in two appeals and remanded them to the original adjudicating authorities for fresh speaking orders [Narmada Drinks Pvt Ltd v. Commissioner, State Tax] and [SRS Traders v. Commissioner, State GST].

The Bench of Pradeep Kumar Vyas (Judicial Member) and Chandra Bhushan Singh (Technical Member) found in Narmada Drinks that, although no e-way bill was generated for a beverage consignment and the pleaded portal failure was not established, the MOV-09 did not disclose a completed, reasoned determination after an effective hearing under Section 129(4). In SRS Traders, the MOV-09 bore the notation "order enclosed", but no reasoned enclosure was found on record.

In both cases, the Tribunal held that payment through DRC-03 to secure release neither cures the defect nor waives the challenge. Using its power under Section 113(1), it remitted the matters directly to the original authorities, as remand to the first appellate authority would not cure the foundational defect.

The fresh proceedings are confined to the allegation in the existing MOV-07, with no new charge permitted. The officers must supply relied-upon material, verify the documents actually produced at interception, grant a hearing and pass reasoned orders. Amounts already paid will abide by the outcome.

2026-juristway.com-2996-GSTAT(Raipur)-GST & 2026-juristway.com-3000-GSTAT(Raipur)-GST  |  GSTAT, Raipur  |    13.10.2026