2025 (11) TMI 290

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....in- Original dated 4th February 2025. 3. Vide the impugned order, various demands have been raised against the Petitioner on the ground of availment of fraudulent Input Tax Credit (hereinafter "ITC") from non-existing entities. 4. On 13th May, 2025, ld. Counsel for the Respondent was to check up as to whether there are any connected writ petitions and thereafter the matter has been taken up for hearing today. 5. Submissions have been heard on behalf of the parties. 6. A perusal of the impugned order would show that the matter involves hundreds of firms which are stated to be fraudulently availing and passing on ITC. There were a total of 53 firms which were found to be bogus entities setup by one Mr. Mukesh Jain. Out of these 53....

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....ons made cannot be brushed aside. Proper demands have been raised against the Petitioner which can be challenged by way of an appeal and this is not a fit case for entertainment of writ petition. 13. Under such circumstances, in the opinion of this Court, this involves factual matters which ought to be taken up in Appeal and not in writ jurisdiction. Moreover, in case of the availment of ITC, which is fraudulently availed, this Court has already taken a view in several matters that the writ jurisdiction ought not to be ordinarily exercised, including in W.P.(C) 5815/2025 in M/s MHJ Metal Techs v. Central Goods and Services Tax Delhi South, wherein it was held as under: "16. This Court, while deciding the above stated matter, has....

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....C 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 per the Department, which resulted in the imposition of demands and penalties. The demands and penalties have....

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.... not inclined to entertain the present writ petition. However, the Petitioners are granted the liberty to file an appeal. 18. Accordingly, the Petitioners are permitted to avail of the appellate remedy under Section 107 of the CGST Act, by 15th July, 2025, along with the necessary pre-deposit mandated, in which case the appeal shall be adjudicated on merits and shall not be dismissed on the ground of limitation. 19. Needless to add, any observations made by this Court would not have any impact on the final adjudication by the appellate authority." 14. The decision in Metal Techs (supra) was challenged before the Supreme Court in SLP(C) 27411/2025 titled M/S Metal Techs v. Central Goods and Services Tax Delhi South. The ....