Excess stock must be dealt with through assessment and demand provisions, not confiscation under GST law.

Excess stock found during inspection is stated to require action under the GST assessment and demand framework rather than confiscation under section 130. The note treats the earlier view as controlling and says that proceedings under section 130 are impermissible on these facts, because the proper course is to proceed under the assessment and demand provisions for determination of tax liability. It further records that the impugned confiscation orders were quashed and any deposited amount is to be refunded in accordance with law.

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Issues: Whether proceedings under section 130 of the GST Act could be initiated on the basis of excess stock found, or whether the matter was required to be dealt with under sections 73 and 74 of the UPGST Act.

Analysis: The controversy was treated as covered by the earlier decision holding that where excess stock is found, the proper course is to invoke the assessment and demand provisions under sections 73 and 74 of the UPGST Act. On that basis, initiation of proceedings under section 130 of the GST Act was held to be impermissible.

Conclusion: Proceedings under section 130 of the GST Act were not sustainable in the facts of the case, and the petitioner succeeded.

Final Conclusion: The impugned orders passed in proceedings under section 130 of the GST Act were quashed and the petition was allowed, with refund of any deposited amount in accordance with law.

Ratio Decidendi: Where excess stock is found, the matter is to be proceeded with under the assessment and demand provisions and not by invoking the confiscation provision.

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