2025 (6) TMI 1067

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....er- M/s Rohtas Trading Company under Article 226 of the Constitution of India, inter alia, challenging the Order-in-Original bearing no. 98/ADC/D.N./Shaukat Ali Nurvi/2024-25 dated 01st February, 2025 (hereinafter, 'the impugned order'). Vide the impugned order, demands and penalties have been raised against the Petitioner. The impugned order arises out of Show Cause Notice dated 11th June, 2024 (hereinafter, 'the SCN'). 4. The allegations raised by the Department against the Petitioner entity in the said SCN is that the Petitioner fraudulently availed Input Tax Credit (hereinafter, 'ITC'). The ITC which was availed by the Petitioner entity was to the tune of Rs. 20,19,791/- and it is this amount which was set out in the SCN as the undue....

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....ion. 12. In the present case, none of the above exceptions was established. There was, in fact, no violation of the principles of natural justice since a notice was served on the person in charge of the conveyance. In this backdrop, it was not appropriate for the High Court to entertain a writ petition. The assessment of facts would have to be carried out by the appellate authority. As a matter of fact, the High Court has while doing this exercise proceeded on the basis of surmises. However, since we are inclined to relegate the respondent to the pursuit of the alternate statutory remedy under Section 107, this Court makes no observation on the merits of the case of the respondent. 13. For the above reasons, we allow the a....

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...., considering the burden on the exchequer and the nature of impact on the GST regime, writ jurisdiction ought not to be usually exercised in such cases. The relevant portions of the said judgment are set out below: "11. The Court has considered the matter under Article 226 of the Constitution of India, which is an exercise of extraordinary writ jurisdiction. The allegations against the Petitioner in the impugned order are extremely serious in nature. They reveal the complex maze of transactions, which are alleged to have been carried out between various non- existent firms for the sake of enabling fraudulent availment of the ITC. 12. The entire concept of Input Tax Credit, as recognized under Section 16 of the CGST Act is ....

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....e connected in the entire maze and not just the Petitioner. 15. The impugned order is an appealable order under Section 107 of the CGST Act. One of the co- noticees, who is also the son of the Petitioner i.e. Mr. Anuj Garg, has already appealed before the Appellate Authority. 16. Insofar as exercise of writ jurisdiction itself is concerned, it is the settled position that this jurisdiction ought not be exercised by the Court to support the unscrupulous litigants. 17. Moreover, when such transactions are entered into, a factual analysis would be required to be undertaken and the same cannot be decided in writ jurisdiction. The Court, in exercise of its writ jurisdiction, cannot adjudicate upon or ascertain the fact....