During a factory premises survey, discrepancies in raw material ...

Stock Discrepancies Found During GST Survey Must Follow Assessment Under Section 73/74, Not Confiscation Under Section 130

February 24, 2025

Case Laws GST HC

During a factory premises survey, discrepancies in raw material and semi-finished product inventory led to confiscation proceedings under s.130 read with s.122 of the GST Act. The HC ruled that when stock discrepancies are discovered during a survey of a registered dealer, authorities must initiate proceedings under s.73/74 of the GST Act rather than s.130. Following established precedents, the HC determined the respondent's orders dated 16.04.2024 and 23.11.2019 were legally unsustainable. The HC emphasized that inventory irregularities discovered during routine surveys warrant assessment proceedings under s.73/74 rather than the more severe confiscation provisions under s.130. Petition allowed, impugned orders set aside.

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During a factory premises survey, discrepancies in raw material ...

Stock Discrepancies Found During GST Survey Must Follow Assessment Under Section 73/74, Not Confiscation Under Section 130

February 24, 2025

Case Laws GST HC

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