2025 (11) TMI 1012

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.... The present petition has been filed by the Petitioner under Article 226 of the Constitution of India, inter alia, challenging the Order-in-Original dated 21st January, 2025 (hereinafter, 'impugned order') passed by the Office of Assistant Commissioner of Central Tax Division - Old Delhi, Commissionerate CGST Delhi North. 4. Vide the impugned order, a demand has been raised against the Petitioner in the following terms: "ORDER (i) I hereby, confirm the demand of GST totalingRs. 1,33,94,470/ (CGST :Rs. 66,97,237/- + SGST: Rs. 66,97,237/-) (Rs. One Crore Thirty Three Lacs Ninety Four Thousand Four Hundred and Seventy only) from the noticee, under Section 74(1) of the CGST Act, 2017 read with relevant provisions of the SGS....

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.... Section 122(3) of the SGST Act, 2017." 5. A perusal of the above would show that a substantial amount of penalty has been imposed upon the Petitioner on the ground that there was wrongful availment of Input Tax Credit (hereinafter, 'ITC'). 6. The proceedings qua the Petitioner arise out of an investigation conducted against M/s. Ramesh & Co. where the officials of Directorate General of Goods and Service Tax Intelligence (hereinafter, 'DGGI') had searched the residential premises of the proprietor of M/s Ramesh & Co. and during the course of the said investigation, it is stated to have been revealed that the said M/s Ramesh & Co. as also other entities namely, M/s Shiv Traders and M/s Laxmi Trading Co. had passed on fraudulent ITC wi....

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....1,16,20,625 66.97.237 66,97,237 1,33,94,475 27. M/s Samarth Traders is found to have availed fraudulent ITC from fake/non-existent firm. The above investigation shows that M/s Samarth Traders, which was found to be holding GSTIN registration No. 07AMBPB0136DIZZ having Shri Rakesh Kumar Bansal as proprietor, had availed a total fake ITC of Rs. 1,33,94,475/- on bogus invoices issued by M/s Ramesh and Company, M/s Shiv Traders and M/s Laxmi Trading Co. which during departmental proceedings are prima-facie found to be non-existent and bogus entities engaged in passing-on fraudulent ITC without any supply of goods/services. As such, M/s Samarth Traders has availed fake ITC on paper transactions against which no goods actually m....

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....ated in the impugned order that the Petitioner did not co-operate in the investigation. Moreover, personal hearing notices were also issued to the Petitioner but the Petitioner did not appear before the Adjudicating Authority. Paragraph 33 of the impugned order reads as under: "33. To follow the principal of Natural Justice, the opportunities of Personal hearings, in the impugned matter, were given/provided to the noticee vide this office letter(s) dated 11.06.2024, to attend the personal hearing on 14.03.2022. The taxpayer's representative Shri Sanjeev Kumar Aggarwal appeared to attend the personal hearing on 14.03.2022 with the authority letter and submitted a written submission. He further added on the hearing that he has no....