The GSTAT Agra Bench has dismissed four Revenue appeals and upheld the First Appellate Authority’s quashing of Section 130 proceedings initiated against brick field operators where excess/unaccounted bricks and coal were found during survey of business premises, holding that the correct statutory route for dealing with unaccounted goods found during survey is Section 73/74 of the CGST Act, not Section 130 read with Rule 120. The ruling by Member (Judicial) Ajeet Singh and Member (Technical) Vivek Kumar in APL/158-161/AGR/2026 (Jitendra Kumar v. M/s R.V. Brick Field and others, decided 17.09.2026) follows the Allahabad HC’s consistent line in Dinesh Kumar Pradeep Kumar (25.07.2024), Shri Om Steels (19.07.2024) and V.K. Electricals (23.08.2024).
The Tribunal noted that Section 35(6) of the CGST Act expressly provides that where a person fails to account for goods, the proper officer shall determine the tax payable as if such goods had been supplied, and the provisions of Section 73 or 74 shall mutatis mutandis apply. The Tribunal also observed with concern that the Revenue had filed the appeals in a perfunctory manner without application of mind, challenging only the fine component when the entire proceedings under Section 130 had been quashed.
- 2026-juristway.com-2567-GSTAT(Agra)-GST | GSTAT Agra Bench | APL/158-161/AGR/2026 | 17.09.2026