GST--Confiscation of goods
Proceedings Under Section 130 of the UPGST Act Cannot be Initiated on Account of Excess Stock
Akhilesh Kumar Sah
Proper section has to be applied while taking an action under GST Act otherwise the proceedings will be quashed by the proper court of law.
1. Introduction
Section 130 of Goods and Services Tax Act, 2017 (for short "the Act") deals with the confiscation of goods or conveyances and levy of penalty. Section 73 of the Act deals with the determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts. Section 74 of the Act deals with the determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-is statement or suppression of facts.
2. Determination of tax under section 74
Section 74 of the Act reads as under :
(1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice.
(2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order.