No GST Demand can be raised for excess stock during search under Section 130 

J.T.Steel Traders Vs State of U.P. And 2 Others (Allahabad High Court)

The Hon’ble Allahabad High Court in J.T. Steel Traders v. State of U.P. and 2 Others [WRIT TAX No. 1154 of 2022 dated July 28, 2025] held that proceedings under section 130 of the GST Act cannot be initiated solely on the basis of finding excess stock during survey; instead, proceedings under sections 73 or 74 should be adopted.

Facts:

J.T. Steel Traders (“the Petitioner”) is a registered

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