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

  • Blog|News|GST & Customs|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 16 April, 2024

Latest from Taxmann

GST Authority

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.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied