TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 437
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....) was issued on 29th July, 2024 by Additional Commissioner, CGST Delhi North to one M/s SK Sales & Ors which was in respect of fraudulent availment of ITC. 4. Upon further scrutiny, it was found that one M/s Mishra Enterprises had issued 87 e-way bills in October 2023 with the total assessable value of more than Rs.19.71 crores, which was found to be suspicious. 5. Additionally, M/s Mishra Enterprises had also availed of inward supplies from various suspicious firms. The name of the Petitioner-M/s Yamini Bearing Enterprises appears at Serial No. 65 of Table No.28 of the impugned order. The Petitioner firm was one of the parties who were recipients of ITC from 10 non-existent firms. 6. Specifically, insofar as Petitioner is concerned, the 3 firms which were found to be non-existent are: ● Rolta Industries ● Ayka International ● Renee Overseas 7. The total amount of ITC alleged to have been availed of by the Petitioner is to the tune of Rs. 2,19,518/- as CGST and the same amount of SGST, which totals to a sum of Rs. 4,39,036/-. 8. The case of the Petitioner is that no Show Cause Notice(hereinafter, 'SCN') was issued to the P....
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..../s Commercial Steel Limited', has held as under: "11. The respondent had a statutory remedy under section 107. Instead of availing of the remedy, the respondent instituted a petition under Article 226. The existence of an alternate remedy is not an absolute bar to the maintainability of a writ petition under Article 226 of the Constitution. But a writ petition can be entertained in exceptional circumstances where there is: (i) a breach of fundamental rights; (ii) a violation of the principles of natural justice; (iii) an excess of jurisdiction; or (iv) a challenge to the vires of the statute or delegated legislation. 12. In the present case, none of the above exceptions was established. There was, in fact, no violation of the principles of natural justice since a notice was served on the person in charge of the conveyance. In this backdrop, it was not appropriate for the High Court to entertain a writ petition. The assessment of facts would have to be carried out by the appellate authority. As a matter of fact, the High Court has while doing this exercise proceeded on the basis of surmises. However, since we are inclined to rele....
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....d 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 been imposed on a large number of firms and individuals, who were connected in the entire maze and not just the Petitioner. 15. The impugned order is an appealable order under Section 107 of the CGST Act. One of the co-noticees, who is also the son of the Petitioner i.e. Mr. Anuj Garg, has already appealed before the Appellate Authority. 16. Insofar as exercise of writ jurisdiction itself is concerned, it is the settled position that this jurisdiction ought not be exercised by the Court to support the unscrupulous litigants. 17. Moreover, when such transactions are entered into, a factual analysis would be required to be undertaken and the same cannot be decided in writ jurisdiction. The Court, in exercise of its writ jurisdiction, cannot adjudicate upon or ascertain the factual aspects pertaining to what was the role ....
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....or the sake of enabling fraudulent availment of the ITC. 12. The entire concept of Input Tax Credit, as recognized under Section 16 of the CGST Act is for enabling businesses to get input tax on the goods and services which are manufactured/supplied by them in the chain of business transactions. The same is meant as an incentive for businesses who need not pay taxes on the inputs, which have already been taxed at the source itself. The said facility, which was introduced under Section 16 of the CGST Act is a major feature of the GST regime, which is business friendly and is meant to enable ease of doing business. 13. It is observed by this Court in a large number of writ petitions that this facility under Section 16 of the CGST Act has been misused by various individuals, firms, entities and companies to avail of ITC 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 h....
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.... any impact on the final adjudication by the appellate authority." 18. The decision in Metal Techs (Supra) has also been carried to the Supreme Court in SLP(C) 27411/2025 titled M/S Metal Techs v. Central Goods and Services Tax Delhi South. In the said SLP, the Supreme Court vide order dated 22nd September, 2025 has merely extended the time for filing the appeal. 19. It is not in dispute that the email dated 01st August, 2024 was received by the Petitioner. The Petitioner had a duty to appear and to also participate in the proceedings fully. The SCN is also stated to have been uploaded on the GST portal but the same has not been placed on record. Ld. Counsel for the Respondent has placed it on record. 20. Under these circumstances, while there could be an error in the DRC-07, the same cannot be held to be a fatal error. It would only be an inadvertent error. 21. In the light of the facts and circumstances of the present case, this Court is of the view that the Petitioner can only be permitted to file an appeal challenging the impugned order and DRC-07. Similarly, this Court in W.P(C) 11906/2025 titled M/S Ganpati Polymers v. Commissioner of Central Goods and Service Tax....