Vijay Trading Company Vs Additional Commissioner Grade-2 And Another (Allahabad High Court)
Excess stock during the inspection/search proceeding cannot empower to initiate the proceeding under Section 130 for Confiscation of goods, Allahabad High Court
In recent case of Vijay Trading Company Versus Additional Commissioner Grade-2 And Another (WRIT TAX No. – 1278 of 2024) Allahabad High Court, held that, excess stock during the inspection/search proceeding cannot empower to initiate the proceeding under Sec 130 for Confiscation of goods.
Read SC Judgment: GST Proceedings Based on Excess Stock Must Follow Due Process: SC Upholds HC Order
Fact of the case: – the petitioner is a registered Company and is engaged in the business of manufacture and sale of hardware goods. an inspection/search under section 67 of the GST Act was conducted at the business premises of the petitioner by the SIB and the stock was assessed on the basis of eye measurement and it was held that excess stock was found. And proceeding as per Sec 130 of GST act was initiated for the taxpayer for confiscation of goods. And order passed for demand of tax on the basis of estimation.
Court finding and conclusion: – Section 35 (1) clearly provides that all the registered person are required to keep and maintain at the principal place of business a true and correct account of things specified in Clause (a) to (f). The Second proviso to Section 35 (1), Rule 56 and Rule 57 make it further necessary to keep the said documents as specified in Clause (a) to (f) in the electronic form.
