2024 (6) TMI 1377 - HC - GST

Fraudulent GST Registration Misuse Leads to Judicial Intervention and Protective Measures for Petitioner Under Section 35

Nirdosh Kumar Sadh Versus Commissioner Delhi Goods And Service Tax & Ors.

HC found petitioner's GST registration credentials were fraudulently misused without consent. Court issued notice to respondents, directing disclosure of ... Availing irregular ITC - misuse of GST number and credentials by some third party - challenge to demand against petitioner - HELD THAT:- Issue notice. Notice is accepted by learned counsel appearing for the respondents, who prays for time to take instructions. Respondents shall file an affidavit - Respondents shall also indicate as to what action was taken by the Proper Officer on the compliant made by the petitioner in October, 2019 - Respondent No. 4 shall also file an affidavit indicating the steps taken shall on the complaint made by the petitioner to the SHO, Police Station, Krishna Nagar on 05.10.2019 vide DD No. 42D and to the Deputy Commissioner of Police, Shahdara District, Delhi and delivered on 07.10.2019. List on 19.07.2024. Issues: Impugned order creating demand against petitioner, misuse of GST number and credentials, lack of action by authorities, petitioner's information being changed online without consent, lack of business transactions or filed returns.The judgment pertains to the petitioner challenging an order creating a demand against them due to the misuse of their GST number and credentials. The petitioner had applied for GST registration but subsequently shut down their business, claiming no business transactions were conducted. The petitioner alleged that their online credentials were misused, with changes made to their registered email address and phone number without their knowledge. The petitioner notified the Proper Officer and the Police about the misuse, but no action was taken. The court issued notice to the respondents, directing them to file an affidavit disclosing various details, including the application form, original contact information, changes made, logging credentials creation details, bank account information, and transaction records. The respondents were also instructed to explain the actions taken by the Proper Officer and the steps taken by the concerned authorities in response to the petitioner's complaints. The matter was listed for further hearing, with a stay on any coercive action against the petitioner until the next hearing on 19.07.2024.