TaxTMI 
TaxTMI 
2025 (11) TMI 1179
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...., 'CGST Act'). 3. Further, the petition being W.P.(C) 16884/2025 has been filed by the Petitioner, inter alia, assailing the Provisional Attachment Order dated 21st November, 2023 in Form GST DRC-22 issued by the Commissioner of GST, Delhi-East. 4. The brief background of the present case is that on the basis of allegations of wrongful availment of Input Tax Credit (hereinafter, 'ITC'), a Show Cause Notice (hereinafter, 'SCN') dated 30th July, 2021 was issued against the Petitioner. The allegation in the said SCN was that Rs.10.70 crores was availed of as ITC by the Petitioner through fictitious firms on bogus invoices without there being actual supply of goods. The said SCN was based upon investigation initiated by the Department against the Petitioner company wherein the Director of the Petitioner company i.e., Mr. Ashish Goyal was, in fact, arrested. He was thereafter granted bail on 18th November, 2020. The Petitioner then filed replies to the SCN on 6th September, 2021 and 12th December, 2023. The impugned order dated 1st January, 2025 was then passed confirming the demand in the following terms: "i) I hereby order to recover ITC of IGST of Rs. 26,26,988/- (Twen....
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....ch the show cause notice is issued. iv) The Order in Original does not duly address the reply submitted by the Petitioner." 6. Thereafter, a counter affidavit was called for from the Department and the same has been filed by Mr. Aditya Singla, ld. SSC for the Respondent. 7. In the meantime, when the investigation had initially commenced, a Provisional Attachment Order was issued to the Petitioner on 18th November, 2020 which was challenged by the Petitioner before this Court in W.P.(C) 14860/2023 titled 'M/s Devansh Wire and Cables Private Limited v. Union of India & Anr.'. The said writ petition was disposed of by the Co-ordinate bench of this Court on 16th November, 2023 in the following terms: "3. The petitioner has filed the present petition impugning an order dated 18.11.2020 (hereafter 'the impugned order') passed under Section 83 of the Central Goods and Services Tax Act, 2017 (hereafter 'the CGST Act') provisionally attaching the petitioner's property as well as its bank account 4. In terms of Section 83 (2) of the CGST Act, an order passed under Section 83(1) of the CGST Act is not operative after expiry of a period of one year. Thus, the i....
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....nsofar as the issuance of consolidated SCN for multiple financial years is concerned, the said issue stands settled by this Court in the decision in Ambika Traders Through Proprietor Gaurav Gupta V. Additional Commissioner, Adjudication DGGSTI, CGST Delhi North, 2025: DHC:6181-DB. The relevant portion of the said decision reads as under: "Consolidated SCN for Multiple Financial Years 43. Insofar as the issue of consolidated notice for various financial years is concerned, a perusal of Section 74 of the CGST Act would itself show that at least insofar as fraudulently availed or utilized ITC is concerned, the language used in Section 74(3) of the CGST Act and Section 74(4) of the CGST Act is "for any period" and "for such periods" respectively. This contemplates that a notice can be issued for a period which could be more than one financial year. Similar is the language even in Section 73 of the CGST Act. The relevant provisions read as under: "73. 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 for any reason other than fraud or an....
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....ction (9) within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within three years from the date of erroneous refund" "74.[...] 10) The proper officer shall issue the order under sub-section (9) within a period of five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date 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 ....
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.... under: "1. Exemption Application is allowed. 2. The High Court while rejecting the Writ Petition filed by the petitioner - herein, has observed in Para No. 15 of its impugned order as under:- "15. At this stage, ld. Counsel for the Petitioner submits that the Petitioner may be permitted to avail of appellate remedy as the present writ petition was filed within the period of limitation prescribed under Section 107 of the Central Goods and Service Act, 2017. Accordingly, the Petitioner is granted time till 31st August, 2025 to avail of its appellate remedy" 3. Thus, the High Court has reserved liberty in favour of the petitioner to prefer appropriate statutory appeal. 4. If any statutory appeal is preferred by the petitioner, the issue of delay may be considered accordingly, more particularly keeping in mind that the petitioner was pursuing its remedy before the High Court and thereafter before this Court. 5. We grant the petitioner time upto 31-10-2025 to prefer the statutory appeal as provided in law. 6. With the aforesaid, the Special Leave Petition stands disposed of. 7. Pending applications, if any, also st....