{"id":4451,"date":"2025-06-19T17:06:02","date_gmt":"2025-06-19T11:36:02","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=4451"},"modified":"2025-06-19T17:06:02","modified_gmt":"2025-06-19T11:36:02","slug":"confiscation-not-justified-for-excess-stock-alone-allahabad-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc","title":{"rendered":"Confiscation Not Justified for Excess Stock Alone | Allahabad HC"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000399720\/initiation-of-sec-130-proceedings-not-justified-if-excess-stock-found-confiscation-order-to-be-quashed-hc\">Raj Steel Versus State of U.P. (2025) 31 Centax 119 (All.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Piyush Agrawal<\/strong>, J.<\/li>\n<li><strong>Shri Sanyukta Singh<\/strong> &amp; <strong>Chhaya Gautam<\/strong> for the Petitioner.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner filed a writ petition challenging the confiscation order issued by the jurisdictional authority under section 130 of the Uttar Pradesh Goods and Services Tax Act GST Act and the CGST Act, pursuant to detection of excess stock during inspection. It was submitted that the issue was directly governed by the judgment of the same Court in Dinesh Kumar Pradeep Kumar v. Additional Commissioner Grade 2 (2024) 21 Centax 358 (All.), which was affirmed by the Supreme Court in Additional Commissioner Grade 2 v. Dinesh Kumar Pradeep Kumar.<\/p>\n<p>Relying on the said decisions, it was contended that where excess stock is discovered, the appropriate legal course is to initiate proceedings under section 73 or section 74 of the UPGST Act, depending on the presence or absence of intent to evade tax, and not under section 130 which presupposes such intent. The matter was accordingly placed before the Allahabad High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Allahabad High Court held that the legal position enunciated in Dinesh Kumar Pradeep Kumar (supra) was squarely applicable, and that proceedings under section 130 of the UPGST Act and CGST Act could not be sustained solely on the basis of excess stock. The Court observed that in such cases, the statutory remedy lies under section 73 or section 74, which govern recovery of tax not paid or short paid, and not under the confiscatory provisions of section 130. Consequently, the confiscation order passed by the jurisdictional authority was quashed.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>Additional Commissioner, Grade &#8211; 2 (APPEAL) v. Dinesh Kumar Pradeep Kumar \u2014 [SLP (Civil) Diary No. 5879 of 2025, dated 17-4-2025] \u2014 Referred [Para 3]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2024)%2021%20Centax%20358%20(All.)&amp;itemType=AP\">Dinesh Kumar Pradeep Kumar v. Additional Commissioner Grade 2<\/a> \u2014 (2024) 21 Centax 358 (All.) \u2014 Referred [Para 3]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Raj Steel Versus State of U.P. (2025) 31 Centax 119&hellip;<\/p>\n","protected":false},"author":8,"featured_media":4457,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-4451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Confiscation Not Justified for Excess Stock Alone | Allahabad HC<\/title>\n<meta name=\"description\" content=\"Allahabad HC rules Section 130 GST proceedings invalid where excess stock is found without intent to evade; directs use of Section 73 or 74 for tax recovery.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Confiscation Not Justified for Excess Stock Alone | Allahabad HC\" \/>\n<meta property=\"og:description\" content=\"Allahabad HC rules Section 130 GST proceedings invalid where excess stock is found without intent to evade; directs use of Section 73 or 74 for tax recovery.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc\" \/>\n<meta property=\"og:site_name\" content=\"Centax-Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/centaxindia\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-19T11:36:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"920\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kriti Sharma\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kriti Sharma\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc\"},\"author\":{\"name\":\"Kriti Sharma\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270\"},\"headline\":\"Confiscation Not Justified for Excess Stock Alone | Allahabad HC\",\"datePublished\":\"2025-06-19T11:36:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc\"},\"wordCount\":296,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg\",\"articleSection\":[\"GST\",\"News\",\"Case Chronicles\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc\",\"name\":\"Confiscation Not Justified for Excess Stock Alone | Allahabad HC\",\"isPartOf\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg\",\"datePublished\":\"2025-06-19T11:36:02+00:00\",\"description\":\"Allahabad HC rules Section 130 GST proceedings invalid where excess stock is found without intent to evade; directs use of Section 73 or 74 for tax recovery.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#primaryimage\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg\",\"width\":920,\"height\":540,\"caption\":\"Confiscation Under Section 130\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.centaxonline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Confiscation Not Justified for Excess Stock Alone | Allahabad HC\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#website\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"name\":\"Centax-Blogs\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#organization\",\"name\":\"Centax-Blogs\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"contentUrl\":\"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp\",\"width\":536,\"height\":133,\"caption\":\"Centax-Blogs\"},\"image\":{\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/centaxindia\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270\",\"name\":\"Kriti Sharma\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g\",\"caption\":\"Kriti Sharma\"},\"url\":\"https:\/\/www.centaxonline.com\/blog\/author\/kriti\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Confiscation Not Justified for Excess Stock Alone | Allahabad HC","description":"Allahabad HC rules Section 130 GST proceedings invalid where excess stock is found without intent to evade; directs use of Section 73 or 74 for tax recovery.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc","og_locale":"en_US","og_type":"article","og_title":"Confiscation Not Justified for Excess Stock Alone | Allahabad HC","og_description":"Allahabad HC rules Section 130 GST proceedings invalid where excess stock is found without intent to evade; directs use of Section 73 or 74 for tax recovery.","og_url":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc","og_site_name":"Centax-Blogs","article_publisher":"https:\/\/www.facebook.com\/centaxindia","article_published_time":"2025-06-19T11:36:02+00:00","og_image":[{"width":920,"height":540,"url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg","type":"image\/jpeg"}],"author":"Kriti Sharma","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Kriti Sharma","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#article","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc"},"author":{"name":"Kriti Sharma","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270"},"headline":"Confiscation Not Justified for Excess Stock Alone | Allahabad HC","datePublished":"2025-06-19T11:36:02+00:00","mainEntityOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc"},"wordCount":296,"commentCount":0,"publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg","articleSection":["GST","News","Case Chronicles"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc","url":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc","name":"Confiscation Not Justified for Excess Stock Alone | Allahabad HC","isPartOf":{"@id":"https:\/\/www.centaxonline.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#primaryimage"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#primaryimage"},"thumbnailUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg","datePublished":"2025-06-19T11:36:02+00:00","description":"Allahabad HC rules Section 130 GST proceedings invalid where excess stock is found without intent to evade; directs use of Section 73 or 74 for tax recovery.","breadcrumb":{"@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#primaryimage","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2025\/06\/1.-Confiscation-Not-Justified-for-Excess-Stock-Alone-Allahabad-HC.jpg","width":920,"height":540,"caption":"Confiscation Under Section 130"},{"@type":"BreadcrumbList","@id":"https:\/\/www.centaxonline.com\/blog\/confiscation-not-justified-for-excess-stock-alone-allahabad-hc#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.centaxonline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Confiscation Not Justified for Excess Stock Alone | Allahabad HC"}]},{"@type":"WebSite","@id":"https:\/\/www.centaxonline.com\/blog\/#website","url":"https:\/\/www.centaxonline.com\/blog\/","name":"Centax-Blogs","description":"","publisher":{"@id":"https:\/\/www.centaxonline.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.centaxonline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.centaxonline.com\/blog\/#organization","name":"Centax-Blogs","url":"https:\/\/www.centaxonline.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","contentUrl":"https:\/\/www.centaxonline.com\/blog\/wp-content\/uploads\/2023\/12\/CNETAX-LOGO-1.webp","width":536,"height":133,"caption":"Centax-Blogs"},"image":{"@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/centaxindia"]},{"@type":"Person","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/ec6616ec60dcf123f90d827e5ad10270","name":"Kriti Sharma","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.centaxonline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ae7808b01d77de5dd0be43270be33948?s=96&d=mm&r=g","caption":"Kriti Sharma"},"url":"https:\/\/www.centaxonline.com\/blog\/author\/kriti"}]}},"_links":{"self":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/4451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/comments?post=4451"}],"version-history":[{"count":4,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/4451\/revisions"}],"predecessor-version":[{"id":4456,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/posts\/4451\/revisions\/4456"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media\/4457"}],"wp:attachment":[{"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/media?parent=4451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/categories?post=4451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.centaxonline.com\/blog\/wp-json\/wp\/v2\/tags?post=4451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}