Jammu Kashmir High Court quashes GST penalty over notice delay

The Jammu Kashmir and Ladakh High Court has quashed penalty proceedings against a petitioner, ruling that a one-day delay in issuing a statutory notice violated the mandatory timelines of the Central Goods and Services Tax (CGST) Act, 2017.

A Division Bench, including Acting Chief Justice Sanjeev Kumar and Justice Mohd Yousuf Wani, set aside orders from the State Taxes Department's Appellate Authority and the Deputy Commissioner of State Taxes Enforcement. The court found that the required notice under Section 129(3) of the CGST Act was not served within the prescribed seven-day window following the detention or seizure of goods.

In its decision, the Bench reiterated that the timelines established under Section 129(3) are mandatory, aligning with previous rulings by the same court and other High Courts regarding statutory compliance.