S. 130 Proceedings under GST Act cannot be initiated against Excess Stock found during Survey: Allahabad HC

The Allahabad High Court ruled that proceedings under Section 130 of the GST Act, which deals with confiscation, cannot be initiated solely based on excess stock found during a survey. The court held that the mere discovery of excess stock does not automatically indicate an intent to evade taxes, and hence, confiscation under Section 130 was not warranted. The ruling protects businesses from harsh penalties and confiscation actions in cases where excess stock is discovered without conclusive evidence of tax evasion. The court emphasized the need for a more nuanced approach to GST enforcement, ensuring that penalties are proportionate and justified.