Excess stock found during survey: Navigating the Intricacies of UPGST / CGST Act and Invoking Wrong Provisions

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....ement delivered by the High Court (HC) in a case related to the Uttar Pradesh Goods and Services Tax (UPGST) Act. The case revolves around the initiation of proceedings u/s 130, read with Section 122 of the UPGST Act, against a registered dealer engaged in the trading of iron and steel. Arguments Presented The petitioner, a registered dealer, challenged the impugned orders passed by the authorit....

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....0 - ALLAHABAD HIGH COURT and M/s Maa Mahamaya Alloys Pvt. Ltd. Versus State of U.P. And 3 Others - 2023 (3) TMI 1358 - ALLAHABAD HIGH COURT. In the Metenere Ltd. case, the Court held that even if excess stock is found, proceedings u/s 130 of the UPGST Act cannot be initiated. The Court emphasized that the proper officer is empowered to determine the tax payable u/s 35(6) after following the proce....

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....ved that even if excess stock was found, the proceedings should have been initiated u/ss 73 and 74 of the UPGST Act, and not u/s 130. The Court upheld the principle that the determination of tax payable on unaccounted goods must be done in accordance with Sections 73 or 74 of the Act, as established in the Metenere Ltd. case. Doctrine or Principle Discussed The judgement primarily discussed the ....

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....st a registered dealer engaged in the trading of iron and steel. The Court held that even if excess stock was found during a survey, the proceedings for determination of tax payable should have been initiated u/ss 73 or 74 of the UPGST Act, and not u/s 130. The Court extensively discussed and relied upon the judgements of the Allahabad High Court in M/s Metenere Ltd. vs. Union of India and Anothe....