Unaccounted stock are liable for confiscation under Section 130 of the CGST Act, 2017 read with Rule 139 of CGST Rules, 2017
Confiscation of goods— In the instant case, the appellants have acted intentionally in order to avoid payment of CGST/SGST and did not maintain proper record of the stock of raw material perfume/ compound found excess stored in their residence premises, as required under Rule 56 of the CGST Rules, 2017. Further, they did not file monthly/ periodically return in respect of the said goods procured and stored in their factory premises as required under the law.
During physical stock verification an excess/ unaccounted stock of 300 Kgs perfume/compound valued at Rs. 15,79,200/- was also found without any relevant documents. The excess/unaccounted found goods were seized under Section 67(2) of the CGST Act, 2017
Held that— the appellants were required to comply the provisions of law and to follow the procedure as prescribed under CGST Act/Rules but the appellants have completely failed to do so. Therefore, the goods found in excess/unaccounted were liable for confiscation under Section 130 of the CGST Act, 2017 read with Rule 139 of CGST Rules, 2017 and read with Section 130 of the Rajasthan GST Act, 2017 and the appellants were also liable for penal action under Section 122(1)(xvi) and (xviii)/125 of the CGST Act, 2017 and the Rajasthan GST Act, 2017.