Case Details: Additional Commissioner Grade-2 Versus Vijay Trading Company (2025) 30 Centax 214 (S.C.)
Judiciary and Counsel Details
- Sanjiv Khanna, CJ., Sanjay Kumar & K.V. Viswanathan, JJ.
- Shri Bhakti Vardhan Singh, AOR, Ms Sthavi Asthana, Adv. for the Petitioner.
Facts of the Case
The petitioner in this matter is the Department of Revenue, which filed a Special Leave Petition (SLP) against the judgement and order of the High Court concerning proceedings related to excess stock detected during search or inspection. The High Court had held that in cases where excess stock is found, the proper course of action is to initiate proceedings under Sections 73 and 74 of the CGST Act rather than under Section 130 of the CGST Act, read with Rule 120 of the CGST Rules.
The petitioner contended that the confiscation proceedings under Section 130 were maintainable; however, the legal issue centered on the correct procedural recourse for excess stock seizures. The matter was thus brought before the Hon’ble Supreme Court via the Special Leave Petition filed by the Department of Revenue.
Supreme Court Held
The Hon’ble Supreme Court held that it was not inclined to interfere with the impugned judgement of the High Court and accordingly dismissed the Special Leave Petition. The Court observed that the High Court’s reasoning—that excess stock cases should be proceeded under Sections 73 and 74 and not Section 130—was sound and in accordance with the law. The Court further clarified that the dismissal of the SLP does not preclude the Department of Revenue from pursuing other appropriate remedies available under law.
List of Cases Cited
- SLP Dismissed against Vijay Trading Company v. Additional Commissioner — (2024) 22 Centax 86 (All.) — Referred
