Section 130 GST proceedings cannot rest solely on excess stock found during a survey, making tax and penalty unsustainable.

Section 130 of the GST Act cannot be invoked solely because excess stock is found during a survey. The Court applied the settled position that, where the only basis for action is excess stock noticed in investigation, the authorities exceed the jurisdiction conferred by law. On those facts, the orders fastening tax liability and penalty were held unsustainable.

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Issues: Whether proceedings under Section 130 of the GST Act could be invoked, and tax liability and penalty sustained, merely because excess stock was found during a survey.

Analysis: The impugned orders were founded on excess stock noticed during investigation. The governing legal position, as applied by the Court, is that Section 130 of the GST Act cannot be used where the sole basis is excess stock found at the time of survey. The authorities below acted contrary to that settled position and exceeded the jurisdiction conferred by law.

Conclusion: The invocation of Section 130 of the GST Act was impermissible on the facts found, and the orders imposing tax liability and penalty were unsustainable.

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