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Informative

Excess Stock calls for Proceedings u/s 73/74 of GST Act: Allahabad HC quashes Order u/s 130

Update / Judgement Date

26 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

GSTOther Legal Matters

The Allahabad High Court has quashed an "order under Section 129 of the GST Act," ruling that "excess stock" calls for "proceedings under Section 74." The court's decision, which is a significant victory for the taxpayer, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.