Excess Stock During GST Survey Cannot Trigger Section 130 Action: Allahabad HC

Vidyarthi Dresses Vs State of Uttar Pradesh (Allahabad High Court) The petitioner challenged the impugned orders dated 30.09.2019 and 24.10.2024 passed under the GST Act by the respondents. The dispute arose from a survey conducted at the petitioner’s business premises on 30.04.2019, during which authorities alleged the presence of excess stock. Proceedings under Section 130 of the GST Act were initiated against the petitioner on this basis. The petitioner argued that no actual counting of goods was carried out during the survey and submitted that the authorities should have proceeded under ...