M/S Raj Steel vs. State Of U.P. And 2 Others

Neutral Citation No. - 2025:AHC:91272 Court No. - 10 Case :- WRIT TAX No. - 44 of 2025 Petitioner :- M/S Raj Steel Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Chhaya Gautam,Sanyukta Singh Counsel for Respondent :- C.S.C. Hon'ble Piyush Agrawal,J. Heard Ms. Chhaya Gautam, learned counsel for the petitioner and learned ACSC for the State - respondents. The instant writ petition has been filed against the impugned order dated 7.09.2024 passed by the respondent no. 2 as well as the impugned order dated 05.02.2020 passed by the respondent no. 3 under section 130 of the GST Act. Learned counsel for the petitioner states that the issue in hand is squarely covered by the decision of this Court in S/s Dinesh Kumar Pradeep Kumar Vs. Additional Commissioner, Grade - 2 & Another [Writ Tax No. 1082 of 2022, decided on 25.07.2024], which has been affirmed by the Apex Court in Special Leave Petition (Civil) Diary No. 5879 of 2025 vide order dated 17.4.2025. Learned ACSC does not dispute the aforesaid fact. In S/s Dinesh Kumar Pradeep Kumar (supra), this Court has held that if excess stock is found, the proceedings under section 73 and 74 of UPGST Act will come into play and the proceedings under Section 130 of the GST Act cannot be initiated.

For the reasons recorded in S/s Dinesh Kumar Pradeep Kumar (supra), this writ petition also succeeds and is allowed. The impugned order dated 7.09.2024 passed by the respondent no. 2 as well as the impugned order dated 05.02.2020 passed by the respondent no. 3 under section 130 of the GST Act are hereby quashed. Any amount deposited by the petitioner shall be refunded in accordance with law. Order Date :- 28.5.2025 Rahul Dwivedi/- RAHUL DWIVEDI High Court of Judicature at Allahabad