Section 130 invoked after tax, interest and penalty paid under section 74a

[Diksha Sabarwal]

Hi Experts,

Assessee paid taxation, interest and penalty(100c/o) under section 74A and the seized goods were released after payment on valuations approved by GST Department DGGI. Now next day after the release SCN was raised and confiscation was asked under section 130 and asking to pay penalty under section 122 for non recording of books. Just to heads up, no clandestine sales were found and only excess stock was found on which the liability was discharged under section 74A.

Please share your opinion on the same matter And if possible some relevant case laws so that department view can be challenged.

AI Summary

GST confiscation proceedings question further penalties after excess-stock tax liability is discharged and seized goods are released.
GST confiscation proceedings are questioned after tax, interest and penalty under section 74A were paid on excess stock and seized goods were released. A later show-cause notice seeks confiscation under section 130 and penalty under section 122 for alleged non-recording of books, despite no clandestine sales being found. The central issue is whether further confiscation and penalty action may continue after the excess-stock liability has been discharged.