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.

AI Summary

Confiscation of goods: information sharing may trigger GST probes, but GST must carry out independent investigation and issue notice.
Income Tax search results may prompt a GST investigation because of interdepartmental information sharing, but GST authorities cannot confiscate goods solely on the basis of an IT search. The GST department must conduct its own enquiry, comply with statutory investigation procedures and issue the required notices before resorting to confiscation; historic data from the IT department may be used to initiate GST proceedings, subject to GST-specific procedural compliance.