Maa Amila Coal Depot Vs State of Uttar Pradeh And 2 Others (Allahabad High Court)
Allahabad High Court rules that confiscation and penalty proceedings cannot be initiated under Section 130 of the CGST Act in cases where excess stock is found; directs for refund of amount already deposited
The Hon’ble Allahabad High Court in the case of M/s Maa Amila Coal Depot v. State of U.P. and Ors [Writ Tax No. 1772 of 2025, dated May 30, 2025] held that proceedings under Section 130 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) cannot be initiated in cases where excess stock is found and thus the confiscation and penalty proceedings initiated under Section 130 were quashed, directing for refund of any amount already deposited.
Facts:
Maa Amila Coal Depot (“the Petitioner”) filed the present writ petition challenging confiscation and penalty orders issued under Section 130 of the CGST Act which were passed by the State of Uttar Pradesh and Others (“the Respondents”).
The Petitioner challenged the Order dated July 27, 2022 and summary order dated January 03, 2023, passed by Respondent No. 3, and the Order dated November 27, 2024 passed by Respondent No. 2, under Section 130 of the CGST Act, concerning confiscation and penalty on alleged excess stock.
