TaxTMI 
TaxTMI 
2025 (8) TMI 1203
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.... 226 of the Constitution of India, inter alia, challenging the order dated 24th December, 2024 (hereinafter, the 'impugned order') passed by the office of the Additional Commissioner CGST Delhi North. 3. Vide the impugned order, a demand has been raised upon the Petitioner to the tune of Rs. 18,55,35,050/-. The details of the demand raised is as under: 5. Details of demand Sr. No. Tax rate (%) Turnover Place of Supply Act Tax/Cess Interest Penalty Fee Others Total 1. 0 0.00 Delhi IGST 41,699,072.00 0.00 14.,835,978.00 0.00 0.00 185,535,050.00 4. A brief background of the present case is that the Petitioner is a proprietorship firm involved in trading of goods a....
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....es, including the Petitioner. There were a total of 294 fake firms which were created and the total ITC which has been passed is more than a thousand crores. 10. The Court has considered the Order-in-Original, which is on record. This Court has repeatedly taken the view that, in cases of fake ITC, writ jurisdiction ought not to be ordinarily exercised, more so, when an efficacious alternate remedy is available to the Petitioner. 11. The said proposition of law has been upheld by this Court in Standard Cartons Pvt. Ltd. v. Office of the Commissioner Central Tax Delhi West & Ors. (2025:DHC:4426-DB). In the said decision, the Court inter alia observed that in cases involving availment of fraudulent ITC, writ jurisdiction ought not to be ....
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....edit, as recognized under Section 16 of the CGST Act is for enabling businesses to get input tax on the goods and services which are manufactured/supplied by them in the chain of business transactions. The same is meant as an incentive for businesses who need not pay taxes on the inputs, which have already been taxed at the source itself. The said facility, which was introduced under Section 16 of the CGST Act is a major feature of the GST regime, which is business friendly and is meant to enable ease of doing business. 13. It is observed by this Court in a large number of writ petitions that this facility under Section 16 of the CGST Act has been misused by various individuals, firms, entities and companies to avail of ITC even wh....
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....sdiction, cannot adjudicate upon or ascertain the factual aspects pertaining to what was the role played by the Petitioner, whether the penalty imposed is justified or not, whether the same requires to be reduced proportionately in terms of the invoices raised by the Petitioner under his firm or whether penalty is liable to be imposed under Section 122(1) and Section 122(3) of the CGST Act. 18. The persons, who are involved in such transactions, cannot be allowed to try different remedies before different forums, inasmuch as the same would also result in multiplicity of litigation and could also lead to contradictory findings of different Forums, Tribunals and Courts." 14. The Petitioner has further confirmed that the RUDs....