2026-VIL-282-GSTAT-AGR
  1. Home
  2. 2026-VIL-282-GSTAT-AGR

SGST Tribunal

GST - Initiation of proceedings under Section 130 of the CGST Act, 2017 for confiscation of goods found unaccounted on survey of business premises, as against proceedings under Sections 73 or 74 - Proper officer seized raw material and tobacco products found unaccounted in the books at the business premises of the Respondents and imposed penalty and fine in lieu of confiscation under Section 130(2). The FAA set aside the orders on the view that proceedings under Sections 73 or 74 should have been initiated - Department contended that the tax officer is empowered to inspect the records and to initiate proceedings under Section 130 - Whether the FAA rightly set aside the penalty and fine imposed under Section 130(2) for goods found unaccounted - HELD - Section 35(1) requires registered persons to maintain true and correct accounts of goods, and Section 35(6) empowers the proper officer, where a person fails to keep account of goods, to determine the tax payable on such goods as if they had been supplied by that person under Section 73 or 74, which apply mutatis mutandis. The High Court has consistently held that where excess stock is found during survey, proceedings must be initiated under Section 73 or 74 and not under Section 130 read with Rule 120, and that proceedings under Section 130 are liable to be quashed. Where unaccounted goods are found at the time of survey, the proper officer is empowered only to initiate proceedings under Section 73 or 74 and is not authorised to initiate proceedings under Section 130 and levy penalty in lieu of confiscation - The FAA rightly set aside the orders - The appeals of the Department are dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST Adjudication & Appeals Reform
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?