The petitioner challenged appellate orders upholding proceedings initiated under Section 130 read with Section 122 of the GST Act pursuant to a survey conducted at its business premises. The factual background showed that the alleged discrepancy related to excess stock, without determination of tax liability under Sections 73 or 74. The petitioner contended that confiscation proceedings were wrongly invoked despite the statute prescribing assessment proceedings for such situations.
The Court held that where discrepancies relate to unaccounted stock, the proper course is initiation of proceedings under Sections 73 or 74 and not confiscation under Section 130. It was held that authorities acted in disregard of settled law, despite binding precedents of the High Court affirmed by the Supreme Court. The appellate order was stayed and personal affidavits were directed to be filed by the concerned officers.