Proceedings u/s 130 of GST Act cannot be Initiated for Excess Stock Found During Survey: Allahabad HC

The Allahabad High Court has ruled that proceedings under Section 130 of the Goods and Services Tax (GST) Act cannot be initiated solely based on excess stock found during a survey. The court emphasized that mere possession of excess stock does not constitute grounds for invoking Section 130, which deals with the confiscation of goods and imposition of penalties. The ruling provides relief to businesses facing similar charges and underscores the need for tax authorities to establish more substantial evidence before initiating such proceedings. This decision reinforces the principle that tax enforcement actions must be based on clear and compelling evidence rather than assumptions or presumptions.