HC Set Aside Confiscation Order Since Calculation of Stock on Basis of an Estimate Was Without Any Basis in Law

Case Details: Eco Plus Steels (P.) Ltd. v. State of U.P. - [2024] 161 taxmann.com 414 (Allahabad)

Judiciary and Counsel Details

• Shekhar B. Saraf, J.
• Shekhar B. Saraf for the Petitioner.

Facts of the Case

The petitioner was engaged in trading of iron and steel products. The department conducted survey at the premises of petitioner and it was alleged that there was additional stock of goods. The Assessing Officer passed order of con?scation and levied penalty. The Appellate Authority reduced penalty but upheld con?scation of stock and the additional stock was con?scated on basis of estimation. It ?led writ petition against the order.

High Court Held

The Honorable High Court noted that the stock was not weighed or counted during survey and the calculation of stock by GST Authority on basis of an estimate was without any basis in law. The Court further noted that the entire procedure followed by authorities indicates not only a lackadaisical approach but also showcases incompetence and ine?ciency of authorities, since the survey was carried out in a shoddy manner and thereafter show cause notice and order of con?scation and penalty was passed belatedly. Therefore, it was held that the impugned order was to be set aside.

List of Cases Reviewed

• Maa Mahamaya Alloy Pvt. Ltd. (para 9) followed.