Janta Machine Tools Vs State of U.P. And 2 Others (Allahabad High Court)
Recently in case of Janta Machine Tools vs State Of U.P. Allahabad High Court, held that, excess goods were lying in stock, cannot be invoked for the simple reason that the liability to pay the tax arises at the time of point of supply, and not at any point earlier than that. penalty can be levied, only when the department establishes that there were a contravention of the Act and Rules coupled with the ”intent to make payment of tax’.
Fact of the case
the petitioner is a partnership firm and is engaged in the business of purchase and sale of machines, machinery part, hardware goods. and its registered place of business is situated in Agra. During course of business, a search was conducted on the premises of petitioner firm and excess stock was found, thereof the proceedings under the GST Act were initiated by issuing notice under Section 130 read with Section 122 of CGST / UPGST Act and Tax demand along with penalty and confiscation fine was proposed raised against the petitioner.
the petitioner submitted its reply but being not satisfied with the same, the order confirming the demand has been passed against which the petitioner has filed an appeal, which was partly allowed.
