GSTAT Rejects Confiscation for Unaccounted Stock

During an inspection of Crown Glass Industries, the Department found goods valued at approximately ₹10.83 lakh that were allegedly not recorded in the books. The proper officer initiated proceedings under Section 130 read with Section 122 of the CGST/UPGST Acts and imposed a penalty and fine in lieu of confiscation. The first appellate authority set aside the order, holding that the matter required determination under Sections 73 or 74. The GST Appellate Tribunal upheld that decision, relying on Section 35(6) and the Allahabad High Court’s rulings on unaccounted stock found during inspections.