Disputed GST fraud facts and ongoing investigation can bar writ scrutiny of adjudication orders

Writ jurisdiction under Articles 226 and 227 was held unsuitable where GST adjudication orders were challenged on a disputed factual matrix involving alleged OTP sharing, operation of the registration by third parties, and suspected fraudulent availment of ITC. The court noted that the record and pleadings indicated possible creation of multiple firms and invoice activity requiring investigation, and that a police inquiry was already underway. Because the controversy depended on unresolved questions of fact and alleged fraud, the writ petitions were not entertained, leaving the petitioner to pursue remedies available in law.

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Issues: Whether the writ petitions challenging the GST adjudication orders could be entertained in view of the disputed factual matrix, the alleged voluntary sharing of OTP, and the pending police investigation.

Analysis: The Petitioner's own pleadings and the status report indicated that the GST registration had been obtained in 2018, that an OTP had been shared with a third party, and that multiple firms were created using the registration for transactions involving alleged wrongful availment of ITC exceeding Rs. 50 crores. The factual controversy as to who operated the GST registration, who generated the invoices, and how the alleged fraudulent ITC was availed required investigation. Such questions could not be adjudicated in writ proceedings under Articles 226 and 227, particularly when police investigation was already underway and the record did not support a clear case of complete innocence.

Conclusion: The writ petitions were not entertained.

Final Conclusion: The challenge to the impugned GST orders was declined in writ jurisdiction, leaving the Petitioner to pursue remedies available in law.

Ratio Decidendi: A writ court will not undertake a factual inquiry into alleged fraudulent tax transactions when the controversy turns on disputed questions of fact requiring investigation.

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