PP Polyplast Pvt Ltd Vs Additional Commissioner Grade 2 And Another (Allahabad High Court)
The case of PP Polyplast Pvt Ltd vs Additional Commissioner Grade 2 (Allahabad High Court) centered on a dispute regarding GST proceedings. During a search under Section 67 of the GST Act at the petitioner’s premises in June 2018, excess stock was allegedly found through eye estimation. The petitioner contended that the proper course of action should have been to initiate proceedings under Sections 73/74 for assessing tax on the unaccounted goods, rather than under Section 130. The petitioner argued that the stock assessment was improper and no actual weighment was conducted. The Allahabad High Court referred to previous judgments, including Metenere Limited and M/s Shree Om Steels, which clarified that any excess stock found must be handled under Sections 73/74 of the Act for tax determination, not Section 130. The court concluded that invoking Section 130 in this case was inappropriate, as it applies only when goods are unaccounted for after the point of supply, with intent to evade tax—a situation not proven here. Therefore, the impugned orders were deemed unsustainable.
Read SC Judgment: Eye Estimated Excess Stock Cannot Trigger GST Section 130 Confiscation: SC
