No Coercive Action If Traders Cooperate in Fake ITC Enquiry | HC

Case Details: Harsh Wadhwani vs. Additional Director General Directorate General of GST Intelligence, Raipur - [2025] 180 taxmann.com 91 (Chhattisgarh)

Judiciary and Counsel Details

• Naresh Kumar Chandravanshi, J.
• Manoj Paranjpe, Sr. Adv. & Siddharth Dubey, Adv. for the Petitioner.
• Maneesh Sharma, Amandeep Singh, Pankaj Singh, Advs. & Ms Anuradha Jain, Panel Lawyer for the Respondent.

Facts of the Case

The petitioners, engaged in trading activities and had filed GSTR-3B returns claiming ITC. The GST authorities initiated an enquiry into alleged fake ITC claims linked with two firms, issuing notices and summons for appearance and oral evidence. The petitioners submitted replies and objections and filed a writ petition seeking protection from coercive action and early disposal of their objections. It was contended that protection should be granted during the enquiry. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the petitioners were required to remain present before the investigating officers as and when required. The court directed that no coercive action shall be taken by the GST Authority, provided the petitioners cooperate in the enquiry, with such protection being limited to matters concerning the two firms. It was further directed that objections filed by the petitioners shall be disposed of as early as possible by passing a speaking order in accordance with the law. The writ petition was disposed of with directions in compliance with Sections 69, 70, and 75 of the CGST Act.