2025 (5) TMI 2078 - HC - GST

Challenge to orders passed u/s 130 of the GST Act - excess stock found - HELD THAT - In S/s Dinesh Kumar Pradeep Kumar 2024 (8) TMI 71 - ALLAHABAD HIGH COURT this Court has held that if excess stock is found the proceedings under section 73 and 74 of UPGST Act will come into play and the proceedings under Section 130 of the GST Act cannot be initiated. For the reasons recorded in S/s Dinesh Kumar Pradeep Kumar this writ petition also succeeds and is allowed.

Summary

The Allahabad High Court, through Hon'ble Justice Piyush Agrawal, allowed the writ petition challenging the impugned orders dated 7.09.2024 and 05.02.2020 passed under section 130 of the GST Act. The Court relied on its prior decision in S/s Dinesh Kumar Pradeep Kumar v. Additional Commissioner, affirmed by the Supreme Court, which held that "if excess stock is found, the proceedings under section 73 and 74 of UPGST Act will come into play and the proceedings under Section 130 of the GST Act cannot be initiated." Applying this principle, the Court quashed the impugned orders and directed that any amount deposited by the petitioner be refunded in accordance with law.