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Confiscation of Goods

Krishna Murthy

Sir, Search u/s 132 was conducted by the Income Tax Department and found there was excess stock available in the premises. The assessee has admitted the same as income under Income Tax Act and paid relevant taxes there in. Now, the GST department says that since the goods were not accounted for in the books of accounts, the same is liable for confiscation under Sec 130 of GST Act. Is this valid?

I am of the view that GST Department cannot directly rely on the Search conducted by the Income Tax Department and they have to make independent enquiry and issue proper notice u/s 67(2) of GST Act before resorting to confiscation under GST Act. Is my view correct.

GST Department Must Independently Investigate Before Confiscation Despite Income Tax Findings; Due Process Required Under GST Act A discussion on a forum involves a query about the confiscation of goods under the GST Act following a search by the Income Tax Department, which uncovered unaccounted stock. The querist questions the validity of the GST Department's reliance on this search for confiscation without an independent inquiry. Respondents clarify that while the Income Tax and GST Acts are separate, information sharing between departments is allowed. The GST Department must conduct its investigation and issue proper notices before confiscation. Despite information sharing, action by the GST Department requires adherence to due process, even if based on historic data. (AI Summary)
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