Excess Stock Findings: Invoking Sections 73 and 74 of UPGST Act, Not Section 130

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....erning the initiation of proceedings u/s 130, read with Section 122 of the UPGST Act. The case revolves around the issue of whether proceedings u/s 130 can be initiated against a registered dealer when excess stock is found during a survey, or whether Sections 73 and 74 of the UPGST Act should be invoked instead. Arguments Presented The petitioner, a registered dealer engaged in the trading of i....

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....ess stocks were found without proper entry in the books of account. The respondent argued that since excess stock was noticed, the proceedings u/s 130, read with Section 122 of the UPGST Act, were rightly initiated against the petitioner. Discussions and Findings of the High Court (HC) The HC considered the judgments in M/s Metenere Ltd. Versus Union of India And Another - 2020 (12) TMI 790 - AL....

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....and M/s Maa Mahamaya Alloys Pvt. Ltd. cases. The court held that even if excess stock is found, proceedings u/s 130 of the UPGST Act cannot be initiated. The HC emphasized that the proper officer is empowered to determine the liability of payment of tax u/s 35(6) after resorting to the procedure established u/s 74 of the Act. The court stated that although unaccounted goods are deemed to be suppl....