2025 (8) TMI 475

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....under the Central Goods and Services Act, 2017. 3. The brief facts of the case are that the investigation in the present case was initiated on the basis of a reference received from the Jaipur Zonal Unit of Directorate General of GST Intelligence. During the course of the investigation it was found that certain individuals are involved in creation of non-operational or non-existent firms for fraudulent availment of Input Tax Credit (hereinafter "ITC"). The Department had also investigated four entities namely M/s Sahni Traders, M/s M.R. Enterprises, M/s S K Traders and M/s Mahaveer Impex who were alleged to have passed on ITC to 76 recipients out of which the Petitioner - M/s. Sardar Auto Traders was also found to be one of them. The total....

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....partment for the same period. 7. Heard ld. Counsel for the parties and considered the documents placed on record. The present is a case of notice being issued for fraudulent availment of ITC by four suppliers and the Petitioner is one of the recipients of the said suppliers. In the case of fraudulent availment of ITC, this Court has already taken a view in W.P.(C) 5737/2025 titled Mukesh Kumar Garg vs. Union of India & Ors. that ordinarily, the writ petition would not be maintainable. The said observations are set out below: "11. In the opinion of the Court, since the present matter relates to fraudulent availment of ITC and the impugned order is an appealable order, the Petitioner firm ought to avail of its appellate remedy. Further, th....

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.... Section 16 of the CGST Act has been misused by various individuals, firms, entities and companies to avail of ITC even when the output tax is not deposited or when the entities or individuals who had to deposit the output tax are themselves found to be not existent. Such misuse, if permitted to continue, would create an enormous dent in the GST regime itself. 14. As is seen in the present case, the Petitioner and his other family members are alleged to have incorporated or floated various firms and businesses only for the purposes of availing ITC without there being any supply of goods or services. The impugned order in question dated 30th January, 2025, which is under challenge, is a detailed order which consists of various facts as pe....