2026 (1) TMI 932

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....5/2025-GRD filed under Sections 132(1) (b), 132(1) (c) read with Section 132(5) of Central Goods and Services Tax Act, 2017 (For short "Act, 2017") read with Section 20 (xv) of IGST Act, 2017 by Directorate General of GST Intelligence (For short "DGGI"), Chandigarh Zonal Unit. 2. As per the allegations, notice under Section 70 of Act, 2017 was issued against the petitioner by the DGGI on the allegations that the investigation had revealed that four GST registered companies namely, M/s Pukhraj Packaging Solutions, M/s Sun Industries, M/s Pukhraj Packaging Solutions Private Limited and M/s Pukhraj Packaging Solutions had availed, utilized and passed on ineligible Input Tax Credit (ITC) in excess of the credit actually reflected in their re....

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....equired. No recovery is to be effected from him. He is ready to join the investigation. It is, therefore, urged that the petition deserves to be allowed. 4. Reply has been filed by the respondent. It is argued by learned Senior Standing Counsel for the respondent that there are serious and specific allegations against the petitioner who was acting as a partner in M/s Sun Industries and Director in M/s Pukhraj Packaging Solutions Private Limited and was exercising control over financial and operational decision. He was responsible for day to day affairs of the above named concern and had been operating two other concerns which was inter linked through common proprietorship, financial flow and return filing pattern. ITC to the tune of Rs.8....

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.... affairs of these firms and was directly involved in the fraudulent availment and circulation of credit. 5. THAT in order to conceal the disproportionate circulation of ITC and to create an appearance of legitimate inward supply, two new GST registrations-M/s Ram Enterprises (07AXSPA3815A1ZV) and M/s Deva Enterprises (07GOMPB4414K1ZU)-were fraudulently obtained. These entities issued invoices reflecting taxable value aggregating to Rs.43.80 crore (tax component exceeding Rs.7.88 crore) to the aforesaid four firms, despite having no business activity, infrastructure, or capacity to supply goods. Both these firms were subsequently found nonexistent at their registered addresses. 10. THAT a detailed forensic examination of th....