Shree Om Steels Vs Additional Commissioner Grade-2 And Another (Allahabad High Court)
The Allahabad High Court quashed the orders passed against Shree Om Steels by the Additional Commissioner and Assistant Commissioner of Commercial Tax in Etawah under the UPGST Act. The company, engaged in trading iron and steel, had its goods confiscated and was penalized following a survey in October 2020. The court ruled that the initiation of proceedings under Section 130 of the UPGST Act was inappropriate as it should only be applied post-supply, and not merely on the basis of unaccounted stock found during a survey. The court referred to similar cases, including Metenere Limited and Maa Mahamaya Alloys Pvt. Ltd., emphasizing that any tax determination and penalties should have followed Sections 73 and 74, which relate to unaccounted goods. The judgment held that the authorities had improperly applied Section 130, which does not extend to the circumstances alleged against Shree Om Steels. Consequently, the court set aside the impugned orders and allowed the writ petitions in favor of the petitioner. Also Read: Section 130 GST Proceedings Inapplicable for Excess Stock Found During Survey
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Shri Aditya Pandey, learned counsel for the petitioner and Shri Rishi Kumar, learned Additional Chief Standing Counsel for the State – respondents.
