Excess stock under GST must be assessed through statutory tax-determination provisions, not confiscation proceedings on survey findings.

Proceedings under Section 130 of the Uttar Pradesh GST Act were held unsustainable where they rested on excess stock found during survey. The Court reiterated that mere discovery of excess stock, including on eye estimation, does not justify invoking confiscation-type proceedings for assessment or determination of tax and penalty. Where the dispute concerns unaccounted goods, tax liability must be quantified through the statutory mechanism under Sections 73 and 74, not by bypassing that procedure through Section 130. The petition was therefore allowed on the facts, and the impugned proceedings failed.

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Issues: Whether proceedings under Section 130 of the Uttar Pradesh Goods and Services Tax Act, 2017 could be sustained where excess stock was found during survey, or whether the matter had to be dealt with under the tax-determination provisions.

Analysis: Excess stock was found during survey at the petitioner's business premises, and the impugned proceedings were founded on that finding. The Court reiterated the settled view that mere discovery of excess stock does not justify invocation of Section 130 for assessment or determination of tax and penalty. Where the dispute concerns unaccounted goods, tax liability must be quantified in accordance with the statutory mechanism under Sections 73 and 74, and not by resorting to Section 130. The Court followed its earlier consistent view that eye estimation or survey-based excess stock findings cannot substitute the prescribed procedure for tax determination.

Conclusion: Proceedings under Section 130 were held unsustainable on the facts, and the writ petitioner succeeded.

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