2025 (8) TMI 1392

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....27th January 2025 passed by the Respondent-Additional Commissioner, Delhi North. The present petition also challenges the Show Cause Notice bearing no. 77/2024-25 dated 23rd July 2024 issued by Deputy Commissioner, Anti Evasion, CGST-Delhi North. 3. The primary issue that arises in the present petition is as to whether a single Show Cause Notice can be issued for multiple years or not. 4. A perusal of the Order-in-Original would show that it relates to multiple years but deals with passing of Input Tax Credit amounting to more than Rs. 89 Crores. The demand has been raised against the Petitioner to the tune of Rs. 54,35,244 (Rs.  27,17,622/- as Tax and Rs.  27,17,622/- as Penalty). 5. The impugned order is an appealable order. ....

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....e same as are mentioned in the earlier notice. XXXX 74. Determination of tax [, pertaining to the period up to Financial Year 2023-24,] not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts.-- XXXX (3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax. (4) The service of statement under sub-section (3) shall be deemed to be service of notice ....

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....e of erroneous refund." The Legislature is thus, conscious of the fact that insofar as wrongfully availed ITC is concerned, the notice can relate to a period and need not to be for a specific financial year. 46. The nature of ITC is such that fraudulent utilization and availment of the same cannot be established on most occasions without connecting transactions over different financial years. The purchase could be shown in one financial year and the supply may be shown in the next financial year. It is only when either are found to be fabricated or the firms are found to be fake that the maze of transactions can be analysed and established as being fraudulent or bogus. 47. A solitary availment or utilization of ITC in one financial ye....

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....n be the persons in whose name the GST registration is obtained. Businesses, individuals, and entities have charged commissions for passing on ITC. In several cases, it has also been noticed that the persons in whose name the GST registration stands are in fact domestic helps, drivers, employees, etc., of businessmen who are engaged on salary and who may not even be aware that their identities are being misused. 50. In fact, Parliamentary questions have been raised on such fraudulent availment of ITC. In one such Parliamentary question, it was revealed as under: "The press release issued by Ministry of Finance on 07.01.2024 (Annexure 1) brought out that 29,273 bogus firms involved in suspected Input Tax Credit (ITC) evasion of Rs 44,015....