Vk Electricals Vs Additional Commissioner Grade-2 Appeal-Ii And Another (Allahabad High Court)
Allahabad High Court held that in case of excess stock found at the time of survey proceedings u/s. 73/74 of GST Act should be initiated. Accordingly, initiating proceedings u/s. 130 read with rule 120 unsustainable and liable to be quashed.
Facts- The petitioner is a registered Company and is engaged in the business of trading of electrical goods. On 14.9.2018, an inspection/search under section 67 of the GST Act was conducted at the business premises of the petitioner by the SIB and the stock was assessed on the basis of eye measurement and it was held that excess stock was found. Actual weighment of the stock was not done by the respondents – authorities. Thus it is alleged the proceedings u/s. 30 of the GST Act could not have been initiated against the petitioner, rather, proceedings u/s. 73/74 of the GST Act should have been initiated.
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.
