In M/s ASP Traders v. State of U.P., the Supreme Court held that mere payment of penalty under Section 129(5) of the CGST Act does not eliminate the need for a formal, reasoned order under Section 129(3), especially when objections are raised. The Court emphasized that such orders are mandatory to uphold the taxpayer’s right to appeal under Section 107. Payment made under business compulsion does not amount to accepting liability, and the absence of a mechanism to mark payments as "under protest" on the GST portal further supports this. The Court also reaffirmed that Article 265 of the Constitution bars tax collection without proper legal authority. The judgment ruled that authorities must issue a formal adjudication order to comply with statutory provisions and ensure natural justice, even if goods are released after penalty payment.