Demand order u/s 129 of the CGST Act can’t be passed beyond the period of 7 days from the date of service of notice

Last updated: 31 January 2023

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The Madras High Court has ruled that demand orders issued under Section 129(3) of the CGST Act cannot be passed more than seven days after the notice of detention has been served. In a case involving Deepam Roadways, the court quashed a demand order because it was issued beyond this statutory timeframe. This decision reinforces the importance of adhering to the time limits set out in the CGST Act for issuing such orders.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the matter of Deepam Roadways v. the Deputy State Tax Officer and Ors. [W.P. No. 476 of 2023 and Ors. dated January 23, 2023]quashed the notice of detention of goods and the consequential demand order issued to the assessee, on the grounds that they were not in accordance with Section 129(3) of the Central Goods and Services Tax Act, 2017 ("the CGST Act"). Held that,the demand order passed beyond the period of seven days from the date of service of the notice, is contrary to Section 129(3) of the CGST Act.

Citation :
W.P. No. 476 of 2023 and Ors. dated January 23, 2023

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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