GST / Indirect Tax and Excess Stock : Order passed by Tax Department Levying Tax and Penalty Set Aside by HC

GST / Indirect Tax and Excess Stock : Order passed by Tax Department Levying Tax and Penalty Set Aside by HC

In case of Tru Sound Pvt Ltd v. State of UP [2025] GCtR 1571 (Allahabad), Department's action to impose penalty and tax after issuing notice under S.130 and S.122 of UP GST Act, 2017 was set aside. It may be noted that earlier it has been held in Vijay Trading Company v. Additional Commissioner [2024] GCtR 3451 (Allahabad) that "proceedings under S. 130 of the GST Act, 2017 cannot be put to service if excess stock is found at the time of survey".

In this case [Tru Sound (supra)], a survey was conducted at the business premises of the petitioner without there being any Panchnama and the alleged excess stock was found.