The GST MOV-10 indicates that the conclusion regarding tax evasion was reached after the 6-day time limit specified under Rule 138C of the CGST Rules. Therefore, the entire proceedings are void.
Saloni Kumari | Apr 22, 2026 |
High Court Strikes Down GST Confiscation Notice for formation of opinion beyond the 6-day statutory period
The GST MOV-10 showed that the formation of the tax evasion opinion was done beyond the period of 6 days as prescribed under Rule 138C of CGST Rules, and therefore, the proceedings are void.
Facts
The petitioner M/S. Ratna Udyog Through Its Authorised Signatory Vijay Sharad Mhamane is challenging the GST MOV-10 notice dated 18.03.2026 under Section 130 of the CGST Act. The vehicle was intercepted on 05.03.2026 at 03:30 AM. Opinion regarding tax evasion was formed on 12.03.2026, which is beyond the 6-day limit prescribed under Rule 138C of the CGST Rules.
Issue
Whether the formation of opinion beyond the 6-day statutory period prescribed under Rule 138C is valid.
Court’s Observation
Rule 138C mandates the completion of the proceedings and formation of an opinion within 6 days. In the present case, the date was 11.03.2026, but the opinion was formed on 12.03.2026.Therefore, the action was beyond time and thus time-barred.
Judgment
The violation of the mandatory 6-day limit nullifies the proceedings. The MOV-10 notice is quashed, and the Gujarat High Court allowed the Writ Petition.
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