Allahabad HC Quashed GST Penalty as Wrong Provision Invoked for Excess Stock During Survey

Harilaxmi Alloys Private Limited Vs State of U.P. And 2 Others (Allahabad High Court) The petition challenged the order dated 30.11.2021 passed by the appellate authority, which had upheld an earlier order imposing tax and penalty under Section 130 read with Section 122 of the GST Act. The case arose from a survey conducted at the petitioner’s business premises on 11.12.2018, where excess stock was allegedly found. The petitioner contended that the stock was assessed through eye estimation rather than actual weighment, and on that basis proceedings under Section 130 were wrongly initiated. I...