Proceedings U/S 130 Of UPGST Act Not Applicable If Excess Stock Is Found At Time Of Survey: Allahabad High Court

The Allahabad High Court has ruled that proceedings under Section 130 of the Uttar Pradesh Goods and Services Tax (UPGST) Act are not applicable in cases where excess stock is found during a survey. The court’s decision clarifies the scope of Section 130, which deals with the confiscation of goods and imposition of penalties. The ruling states that mere possession of excess stock does not constitute grounds for invoking Section 130 unless there is evidence of intent to evade tax. The article explains the legal reasoning behind the court’s decision and its implications for businesses facing similar situations.