Fraudulent ITC Demand Not Entertained in Writ – Appeal Directed | HC

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  • Last Updated on 19 December, 2025

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fraudulent ITC demand

Case Details: Aman Sanitation vs. Principal Commissioner, CGST [2025] 181 taxmann.com 365 (Delhi)

Judiciary and Counsel Details

  • Prathiba M. Singh & Shail Jain, JJ.
  • Shivender Kr. Sharma & Urooj Chaudhary, Advs. for the Petitioner.
  • Pranay Mohan Govil, SSC for the Respondent.

Facts of the Case

The petitioner challenged an order-in-original on the ground of alleged fraudulent Input Tax Credit (ITC). The proceedings arose from an investigation into fake entities transferring ITC, with notices issued identifying the petitioner as a purported recipient of liability. The petitioner submitted that the demand violated the principles of natural justice due to the absence of a personal hearing and the failure to consider its reply. It was contended that the demand should be quashed. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that writ jurisdiction in fraudulent ITC matters is generally not exercised, given the complex facts and potential exchequer impact. The Court clarified that writ relief under Article 226 of the Constitution of India is available only in limited circumstances, such as violations of fundamental rights, breaches of natural justice, excess of jurisdiction, or challenges to vires. Since the petitioner was aware of the notices and had responded, no exceptional ground arose. The Court did not interfere with the demand order. It directed the petitioner to pursue an appeal under Section 107 of the CGST Act, subject to a pre-deposit.

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied