2023 (9) TMI 901 - HC - GST

Identity Theft Exposed: GST Registration Fraud Probe Launched with Cyber Crime Branch Investigation and Conditional Penalty Resolution

S. Kaja Mohideen, Son of Mr. Shagabudeen, (Proprietor of M/s. Rhea Shoes) Versus The Commissioner of GST and Central Excise, The Additional Commissioner of Central Tax, The Commissioner of Police, The Superintendent of Police, The Branch Manager, The Commissioner of Police

HC investigated unauthorized GST registration misuse after petitioner claimed identity theft. Cyber Crime Branch ordered to determine true registration ... Closure of business of respondent and GST registration given to petitioner - GST registration obtained by the third person mis-using the facility - unauthorised transaction - passing on illegal credits using the GST registration obtained in the name of the petitioner - HELD THAT:- This writ petition is disposed by directing the sixth respondent to investigate along with respondent nos.1 to 4 and to give a report as to whether indeed the GST registration was obtained by the petitioner or by any of the nominee of the petitioner or by a third person or a stranger. The penalty imposed in the impugned order will stand affirmed against the petitioner, in case the investigation culminates in a finding against the petitioner. The respondents from the Tax Department and the respondents from the Law Enforcing Department namely the Police and the Cyber Crime shall investigate and to go to the root of the alleged wrongful registration obtained in the name of the petitioner and complete the investigation within a period of 12 months from the date of receipt of a copy of this order - Petition disposed off. Issues involved: Misuse of GST registration, imposition of penalties, investigation by authorities.Summary:The petitioner alleged that a third person misused GST registration obtained in their name, leading to unauthorized transactions and illegal credits. The petitioner was issued a notice imposing significant penalties under the GST enactments, which the petitioner contested, claiming their PAN was misused for registration. The respondents argued for a detailed consideration of the matter, awaiting the petitioner's complaint before the Superintendent of Police. The respondents suggested the petitioner had the option to appeal to the Appellate Authority. After considering the arguments, the court directed an investigation by the Cyber Crime Branch and other authorities to determine the true holder of the GST registration. The penalties imposed would stand if the investigation found against the petitioner. The Tax and Law Enforcement Departments were tasked with investigating the wrongful registration within 12 months, with penalties to be vacated if the petitioner was not involved. The writ petition was disposed of without costs, and related petitions were closed.