2025 (9) TMI 1329

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....ition has been filed by the Petitioners - M/S RST Batteries and M/S RST Batteries Pvt. Ltd. under Article 226 of the Constitution of India, inter alia, challenging the impugned order dated 03rd February, 2025 passed by the Commissioner of CGST, Delhi West Commissionerate (hereinafter 'impugned order'), by which a demand of approximately Rs. 18.83 crores has been raised against the Petitioner. 4. The matter relates to allegations of wrongful availment of ITC (hereinafter "Input Tax Credit") and passing on of ITC without actual supply of goods and services. The allegations against the Petitioners are that the Petitioners had passed on ITC without actually carrying on any business activity. The same position is recorded qua M/S RST Batterie....

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....ircular was cited before the Adjudicating Authority, the same was not taken into consideration. 8. Heard. The Court has perused the impugned order. The same shows that there are a series of transactions relating to companies/entities against whom the allegations are that ITC has been passed on from one set of companies to another and so on, without actual goods and services being supplied. 9. In such a matter, this Court has already taken a view that writ jurisdiction ought not to be exercised ordinarily. In all these matters, in case of availment of fraudulent ITC, there are several factual issues, which would need to be looked into, which cannot be adjudicated in a writ petition. This view has already been taken by this Court in sev....

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....tion on the merits of the case of the respondent. 13. For the above reasons, we allow the appeal and set aside the impugned order of the High Court. The writ petition filed by the respondent shall stand dismissed. However, this shall not preclude the respondent from taking recourse to appropriate remedies which are available in terms of Section 107 of the CGST Act to pursue the grievance in regard to the action which has been adopted by the state in the present case" 10. The said legal position has also been reiterated by this Court in M/s Sheetal and Sons & Ors. v. Union of India & Anr., (2025: DHC: 4057-DB) and by the Allahabad High Court in Writ Tax No. 753 of 2023 titled 'Elesh Aggarwal v. Union of India' wherein the Allahab....