GST Officer Must Pass Reasoned Final Order Even If Penalty Is Paid for Release of Seized Goods: Supreme Court

The Supreme Court held that tax authorities must pass a speaking order under Section 129(3) of the CGST Act, even if the taxpayer has paid the tax and penalty under protest.

The case involved the detention of arecanut goods and a ₹7.2 lakh payment made under protest.

The Court clarified that the “deeming conclusion” under Section 129(5) does not absolve officers from issuing a proper order.

Without such an order, the taxpayer’s right to appeal is nullified. The Court set aside the High Court’s refusal and directed adjudication within one month.

[ASP Traders v. State of UP]