M/S Rajeev Traders vs. State Of U. P. And 3 Others
Held
The Court held that goods not recorded in the regular books of account can be considered 'secreted' for the purpose of seizure under Section 67(2) of the UP GST Act, even if found at a disclosed business premise. The Court also directed the release of seized goods upon furnishing security.
Facts
During a survey at the disclosed business premises of M/s Rajeev Traders, goods were seized. The assessee argued that the goods were not 'secreted' as they were found at their disclosed place of business and not hidden elsewhere. The revenue contended that not disclosing goods in regular books of accounts constitutes 'secreting'.
Key Issues
Whether goods found at a disclosed business premise, but not recorded in account books, can be considered 'secreted' for seizure under GST law? Whether the demand for cash security is excessive when penalty proceedings are ongoing?
Sections Cited
Section 67(2), Rule 39(4)
AI-generated summary — verify with the full judgment below
A.F.R. Court No. - 1 Case :- WRIT TAX No. - 819 of 2019 Petitioner :- M/S Rajeev Traders Respondent :- State Of U. P. And 3 Others Counsel for Petitioner :- Umesh Kumar Pandey Counsel for Respondent :- C.S.C. Hon'ble Saumitra Dayal Singh,J.
Supplementary affidavit filed today is taken on record.
Certified copy of the impugned order has thus been brought on record. In view thereof, the defect stands removed.
Heard Sri U.K. Pandey, assisted by Sri Prabhat Kumar Srivastava, learned counsel for the petitioner-assessee and Sri Jagdish Mishra, learned Standing Counsel for the State.
The present writ petition has been filed by the assessee against the order passed by the Deputy Commissioner (SIB), Commercial Tax, Range A, Meerut dated 03.02.2018 in exercise of power vested under Section 67(2) of the UP GST Act, 2017 (hereinafter referred to as the Act) read with Rule 39(4) of the Rules framed thereunder.
Admittedly, the assessee is a registered dealer engaged in the manufacture and sale of non-woven fabric bags. On 07.12.2017, a survey was conducted on the disclosed business premises of the assessee wherein various goods, registers and other documents were inspected and
The judgment continues below.
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