TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Fraudulent Input Tax Credit activities highlighted; thorough investigation ordered</h1> <h3>M/s. Indo International Tobacco Ltd., M/s. SSM Exports, M/s. Tirupati International Versus Shri Vivek Prasad, Additional Director General, DGGI & Ors., Commissioner Of Central Excise And Service Tax And CGST Delhi West. & Ors. Union Of India & Ors.</h3> M/s. Indo International Tobacco Ltd., M/s. SSM Exports, M/s. Tirupati International Versus Shri Vivek Prasad, Additional Director General, DGGI & Ors., ... Issues:1. Constitutional architecture and application of CGST Act, 2017, IGST Act 2017, SGST, and UGST Acts.2. Allegations of availment and utilization of fake ITC, supply of low-grade tobacco products, and overvaluation by petitioner firm.3. Investigations by DGGI Ahmedabad Zonal Unit regarding non-existent firms and tax evasion.4. Allegations of fraudulent refund of Input Tax Credit by domestic tariff area suppliers to SEZ units.5. Enquiry against M/s Pawanputra Exim and forwarding of investigation to DGGI Ahmedabad.6. Arguments on facts and law in various writ petitions.Analysis:1. The learned ASG detailed the constitutional architecture of various tax Acts and the application of Section 6 of CGST and SGST Acts. He highlighted the petitioner firm's alleged involvement in fake ITC utilization, supply of low-grade tobacco products, and overvaluation to pass on fake ITC, necessitating thorough investigation beyond the jurisdiction of the CGST Commissionerate due to inter-connected entities in Delhi NCR region.2. Investigations by DGGI Ahmedabad Zonal Unit revealed a conspiracy involving non-existent firms engaged in fictitious transactions of 'Smoking Mixture for pipes and cigarettes' to avail unlawful ITC. The petitioner firm, M/s Mridul Tobie Inc, was identified as a beneficiary of fake ITC through paper transactions without actual supply of goods. The probe also focused on overvaluation and misclassification of products by the petitioner firm.3. Mr. Satish Kumar highlighted the fraudulent refund of Input Tax Credit by domestic tariff area suppliers to SEZ units, involving overvalued supply of tobacco products. The investigations targeted entities engaging in such practices to avail ineligible refunds sourced from non-existent entities, leading to a detailed scrutiny of transactions and ITC claims.4. Mr. Harpreet Singh informed about the enquiry against M/s Pawanputra Exim and the subsequent forwarding of the investigation to DGGI Ahmedabad to prevent duplication of work. The Commissionerate clarified that no ongoing investigation was being conducted against the petitioner, emphasizing the coordination between different tax authorities in handling complex cases.5. Arguments on facts and law were presented by counsels representing different parties, focusing on specific aspects of the cases. The court emphasized the need for a balanced approach in hearing arguments and directed a future listing for detailed arguments on behalf of the petitioners.6. Considering the stay on investigations by DGGI Ahmedabad, the court issued directions to withhold refunds to the petitioners until further orders to maintain equity. The order was to be promptly uploaded on the website and shared with counsels via email for compliance and awareness.
TaxTMI 
TaxTMI 
