Section 130 proceedings cannot be initiated for excess stock; cases must follow Sections 73 or 74 under GST Act

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Full Text of the Document

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....The HC held that initiation of proceedings under section 130 read with section 122 of the GST Act based on excess stock found during a survey was improper. The Court reaffirmed that section 130 proceedings are not applicable for cases involving excess stock discrepancies, which must be addressed under sections 73 or 74 of the GST Act. Reliance was placed on precedent establishing that excess stock discovered during a survey cannot trigger section 130 proceedings. Consequently, the impugned orders initiating action under section 130 were quashed, and the petition was allowed, directing the authorities to proceed under the appropriate provisions for tax recovery and assessment.....