AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
Section 130 Proceedings Not Allowed Based on Excess Stock Found Without Proper Verification Under GST Act
X X X X Extracts X X X X
X X X X Extracts X X X X
....Proceedings initiated under section 130 read with section 122 of the GST Act based solely on excess stock found during a survey, without actual verification or weightment, are impermissible. The HC held that the GST Act provides a specific mechanism under sections 73/74 for dealing with unrecorded goods, and thus section 130 cannot be invoked in such circumstances. Precedents from this HC and the SC affirm that excess stock discovered at survey does not warrant initiation of proceedings under section 130. Consequently, the impugned orders issued on this basis were quashed, and the petition was allowed, confirming that section 130 proceedings cannot be employed for excess stock findings during a survey.....