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PIYUSH AGRAWAL
Banaras Industries – Appellant
Versus
Union of India – Respondent
JUDGMENT :
(Piyush Agrawal, J.)
Supplementary-affidavit filed today is taken on record. Parcha filed by Shri K.J. Shukla on behalf of the Union of India is also taken on record.
2. Heard Shri Aditya Pandey, learned counsel for the petitioner, learned Standing Counsel for the State - respondents and learned counsel for the Union of India.
3. The instant writ petition has been filed challenging the impugned order dated 11.5.2022 passed by the respondent No. 5 under Section 130 read with Section 122 of the UPGST Act as well as the impugned order dated 10.4.2023 passed by the first appellate authority, the respondent No. 4.
4. With the consent of the learned counsel for the parties, the instant writ petition is being decided finally without calling for the counter-affidavit.
5. Learned counsel for the petitioner submits that the petitioner is a partnership firm and is engaged in the business of manufacture and sale of iron and steel (ingot, patri, channel, etc.). On 23.11.2021, an inspection/search under Section 67 of the GST Act was conducted at the business premises of the petitioner by the SIB and proceedings under the GST Act were initiated by issuing notice, to which the petitioner su
Proceedings under Section 130 of the UPGST Act cannot be initiated for excess stock; Sections 73 and 74 must be followed for tax determination.
Proceedings under Section 130 of the UPGST Act cannot be initiated if excess stock is found; the proper procedure must follow Sections 73 and 74 for tax determination.
The burden of proof for imposition of penalty and confiscation of goods is on the Department, and the same cannot be done on estimates when physical verification could have been carried out.
For proceedings under section 129 of the UPGST Act, there must be intent to evade tax established; a mere technical breach does not warrant penalties.
The court established that confiscation under Section 130 requires prior action under Section 129, and adherence to natural justice is essential in such proceedings.
Intention to evade tax is a prerequisite for imposing penalties under GST Act; mere technical issues should not warrant such penalties.
For imposition of penalties under the GST Act, intent to evade tax must be established; mere expiration of documents does not suffice.
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