Record-keeping obligations: failure attracts a capped statutory penalty and invalidates arbitrary confiscation without due process.
The judgment emphasises that registered persons must maintain prescribed books and electronic records under Section 35 and related rules, and that any determination of tax on unaccounted goods must follow the show cause procedures for assessing tax liability. It finds that conditions for confiscation under Section 130 were not met and that penalties must be imposed in accordance with the statutory bifurcation in Section 122, with the offences in question attracting only the capped penalty, thereby underscoring procedural limits on enforcement powers.

Record Maintenance under CGST: due process required before determining tax liability and imposing penalties or confiscating goods.
The judgment emphasizes that maintenance of accurate records, including electronic records under Section 35, is mandatory; tax determination on unaccounted goods under Section 35(6) must follow the procedural safeguards of Sections 73 or 74, including issuance of a show cause notice; confiscation under Section 130 requires proof of statutory prerequisites such as intent to evade tax or failure to account for goods; and penalties under Section 122 must be categorised according to whether tax evasion is quantified, with non-evastion contraventions attracting the statutory ceiling applicable to that category.