J.H.V. Steels Ltd Vs Union Of India And 4 Others (Allahabad High Court)
Allahabad High Court held that proceedings under section 130 of the GST Act cannot be put to service if excess stock is found at the time of survey. Accordingly, order set aside and liable to be quashed.
Facts- The petitioner is a Limited Company and is engaged in the business of manufacture and sale of iron and steel. On 30.11.2018, an inspection/search u/s. 67 of the GST Act was conducted at the business premises of the petitioner by the SIB and proceedings under the GST Act were initiated by issuing notice. Thereafter, the impugned order dated 18.07.2019 has been passed. Aggrieved by the said order, the petitioner preferred appeal, which has been partly allowed vide impugned order dated 19.08.2023. Being aggrieved, the present petition is filed.
Conclusion- 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.
Held that the proceedings under section 130 of the GST Act cannot be put to service if excess stock is found at the time of survey. Thus, the impugned order dated 18.07.2019 passed by the respondent no. 5 under section 130 read with section 122 of the UPGST Act as well as the impugned order dated 19.08.2023 passed by the first appellate authority, the respondent no. 4 cannot be sustained in the eyes of law. The same are hereby quashed.
