Lawgics – Judgment No. 188
The Department can proceed under Section 35(6) or 73 or 74 of the UPGST Act instead of Section 130 of the UPGST Act, for excess stock of material on the basis of eye estimation during inspection.
Tag: sec.130 of cgst act
Proceedings under Section 130 of the CGST Act cannot be put to service if excess stock is found at the time of survey
The Hon’ble Allahabad High Court in the case Vijay Trading Company set aside order passed under Section 130 under the CGST Act following the determination of excess stock in inspection and directed the determination of tax on Section 73/74 of the CGST Act. As intent to evade tax must be present for the application of Section 130 of CGST Act.
Penalty proceedings under Section 130 of the CGST Act cannot be initiated if excess stock was found
The Hon’ble Allahabad High Court in the case of PP Polyplast (P.) Ltd. allowed the writ petition and held that no penalty proceedings under Section 130 of the CGST Act is maintainable on the ground of excess stock. It was further stated that the proceedings relating to Section 73/74 should be initiated if prima facie view arises that excess stock was found.
Whether penalty can be levied under section 130 for excess stock found during inspection?
No, the Honorable High Court of Allahabad in the case of M/s Vijay Trading Company quashed the assessment order stating that the law is clear on the subject that the proceedings under section 130 of the GST Act cannot be put to service if excess stock is found at the time of the survey.
Confiscation Proceedings under Section 130 cannot be initiated for allegations regarding excess stock
The Hon’ble Allahabad High Court in the case of Shree Om Steels, allowed the writ petition and held that confiscation proceedings under Section 130 of the CGST Act cannot be initiated for excess stock solely based on survey, as the tax demand must be quantified under Section 73 or 74 of the CGST Act.
Whether the refund of cash seized u/s 67 can be demanded where SCN is issued demanding appropriation of cash seized against the tax liability
Care must be taken that once the SCN is issued, it is the conclusion of the ‘investigation’ and therefore there is no further reason for Revenue to keep custody of seized articles. The Application must be preferred under section 67(6) to seek provisional release of seized ariticles.
Lawgics – Judgment No. 165
Section 35(3) prohibits proceedings under Section 130 for alleged excess stock found during the survey. Proceedings should have been initiated under Section 73 & 74 for excess stock.
HC directs GST Council to consider granting extended time period for filing appeal for order passed under Section 129 and 130 of CGST Act
The Hon’ble Allahabad High Court in the case of Tenet Network (P.) Ltd directed the Revenue Department to consider extension of time period for filing of appeal under Section 129 and 130 of the CGST Act as like orders passed under Section 73 and 74 of the CGST Act
Confiscated goods and vehicles can be released by depositing 25% of the amount mentioned in the Order in cash and furnishing a bank guarantee for the balance
The Hon’ble Punjab and Haryana High Court in the case of M/s. Kanchan Supplier v. State of Punjab and Ors.…
Petitioner is not liable to pay penalties for the wrongful availment of ITC by the Supplier
The Hon’ble Calcutta High Court in the case of Fairdeal Metals Ltd. v. Assistant Commissioner of Revenue, State Tax, Bureau…