Merely on the basis of the fact that dead stock is not accounted for in the books of accounts, it cannot be concluded that the entire physical stock found during the search is kept unaccounted for the purpose of clandestine removal without payment of GST. Hence the departmental appeal considering the entire stock as unaccounted kept for clandestine supply is not correct and therefore the same is to be quashed.
Section 130 of the CGST Act — Confiscation of goods — The appellant department filed appeal on the ground that the adjudicating authority has erred in holding the seized goods to be released as the same is not liable to confiscation. The appellant submitted that the taxpayer/assessee has failed to produce any records related to goods lying in the premises on the date of search. The authority observed that the books of accounts were not available in the premises of the assessee/respondent at the time of search and it was lying only in the premises of the other unit. Therefore, it was enough reason to believe to the search team to seize the goods which were lying at the search premises as the related records/ documents were not available. As per Section 35 it is mandatory at the part of every registered person to keep/ maintain the books of accounts and records at his principal place of business. Hence excess goods found during the search proceedings was rightly been seized and the same is also liable to confiscation under Section 130. The authority observed that the adjudicating authority has ignored the admission/acceptance of value of Proprietor and he incorrectly re-determined the value of seized goods.
Held that:- The Hon’ble authority allowed the appeal and set aside the order in original by the adjudicating authority and ordered confiscation of the seized goods and imposed penalties.
Merely on the basis of the fact that dead stock is not accounted for in the books of accounts, it cannot be concluded that the entire physical stock found during the search is kept unaccounted for the purpose of clandestine removal without payment of GST. Hence the departmental appeal considering the entire stock as unaccounted kept for clandestine supply is not correct and therefore the same is to be quashed.
Section 130 of the CGST Act — Confiscation of goods — The appellant department filed appeal on the ground that the adjudicating authority has erred in holding the seized goods to be released as the same is not liable to confiscation. The appellant submitted that the taxpayer/assessee has failed to produce any records related to goods lying in the premises on the date of search. The authority observed that the books of accounts were not available in the premises of the assessee/respondent at the time of search and it was lying only in the premises of the other unit. Therefore, it was enough reason to believe to the search team to seize the goods which were lying at the search premises as the related records/ documents were not available. As per Section 35 it is mandatory at the part of every registered person to keep/ maintain the books of accounts and records at his principal place of business. Hence excess goods found during the search proceedings was rightly been seized and the same is also liable to confiscation under Section 130. The authority observed that the adjudicating authority has ignored the admission/acceptance of value of Proprietor and he incorrectly re-determined the value of seized goods.
Held that:- The Hon’ble authority allowed the appeal and set aside the order in original by the adjudicating authority and ordered confiscation of the seized goods and imposed penalties.