GST / Indirect Tax : Form GST MOV-09/DRC-07 and Legal Validity of Department's Actions

GST / Indirect Tax : Form GST MOV-09/DRC-07 under CGST Act, 2017 and Legal Validity of Department's Actions

In a recent judgment the principle propounded was that when amount was deposited by the petitioner under protest, as is reflected from Annexure-4 contained in the Form-GST DRC-03 the amount has been deposited under protest and even if the same was not deposited under protest, the authorities cannot shy away from passing order of penalty under Form GST MOV-09. Unless the penalty order is passed by the authorities, the parties are deprived of challenging the action of the respondents and therefore, they cannot be deprived of their right to file appeal. 

In this case, the prayer made by petitioner was to forthwith issue Form GST MOV-09/DRC-07 on the GST common portal of the petitioner in accordance with Circular No.41/15/2018-GST dated 13.04.2018 issued be Central Board of Indirect Taxes and Customs (GST Policy Wing), Department of Revenue, Ministry of Finance, Govt. of India. 

The writ petition was allowed and Order of Tax Department was set aside. For more details refer Uflex Ltd v. Union of India [2025] GCtR 1704 (Allahabad).