Kanha Detergent Pvt Ltd Vs Additional Commissioner Grade-2 And Another (Allahabad High Court)
Allahabad High Court held that if excess stock is found at the time of survey, then proceedings under sections 73/74 of the GST Act should be pressed in service and not proceedings under section 130 of the GST Act
Facts- The petitioner is a registered Company and is engaged in the business of manufacture and sale of detergent powder and cake. On 26.6.2019, an inspection/search u/s. 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. He further submits that the actual weighment of the stock was not done by the respondents – authorities. He further submits that the proceedings u/s. 130 of the GST Act could not have been initiated against the petitioner, rather, proceedings u/s. 73/74 of the GST Act should have been initiated.
Conclusion- It is not in dispute that survey was conducted at the business premises of the petitioner on 26.6.2019. It is also not in dispute that excess stock was found, which triggered the initiation of the present proceedings against the petitioner. On various occasions, this Court has held that if excess stock is found, then proceedings under sections 73/74 of the GST Act should be pressed in service and not proceedings under section 130 of the GST Act, read with rule 120 of the Rules framed under the Act.
