Re-counting of stock not allowed if discrepancy was admitted during search: HC
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 30 July, 2022
Latest from Taxmann
Case Details: Sanjay Trading Company v. State of Madhya Pradesh - [2022] 140 taxmann.com 622 (Madhya Pradesh)
Judiciary and Counsel Details
-
- Sheel Nagu and Maninder S. Bhatti, JJ.
- Mukesh Agrawal, Adv. for the Petitioner.
- Darhsan Soni, Adv. for the Respondent.
Facts of the Case
The search was conducted by the GST department in premises of the petitioner. The petitioner challenged search proceedings on ground that same was not carried out as per statutory provisions and discrepancies pointed out in stock were erroneous. It filed writ petition and requested for re-stocktaking.
High Court Held
The Honorable High Court observed that Panchnama was prepared on spot during search proceedings and it showed that search was carried out in presence of two persons and nephew of petitioner. Moreover, all three persons had signed Panchnama in token of it having been correctly recorded. Further, discrepancy in stock during stock taking, attracting tax and penalty, was admitted in these proceedings itself and due amount relating thereto was deposited voluntarily on date of search itself. Therefore there was no need for seizure of any goods and asking for stock taking again after some days was an afterthought as stock would not have remained untouched during period after search. Thus, the writ petition was liable to be dismissed and the Court held that the re-counting of stock was not allowed.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
