Writ Not Maintainable in Fraudulent ITC Case – Appeal Must Be Filed | HC

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fraudulent ITC case

Case Details: R Gupta Metal Store vs. Central Goods and Services Tax Delhi North [2025] 180 taxmann.com 178 (Delhi)

Judiciary and Counsel Details

  • Prathiba M. Singh & Shail Jain, JJ.
  • Yash Aggarwal & Aman Sinha, Advs. for the Petitioner.
  • Shashank Sharma, SSC & Ms Malika Kumari, Adv. for the Respondent.

Facts of the Case

The petitioner was one of the entities identified during a large-scale investigation into alleged fake invoice operations in Sita Ram Bazar and Naya Bazar, where the Department detected 55 non-existent supplier firms and concluded that more than Rs. 553 crore of inadmissible ITC had been passed on to over 5,962 recipient firms. The petitioner’s name appeared among 670 entities covered by the notices issued in the investigation. A show-cause notice was subsequently served, to which the petitioner submitted a detailed reply along with supporting documents, alleging that these submissions were not properly considered by the adjudicating authority while passing the impugned order.

High Court Held

The High Court held that matters involving alleged fraudulent availment of ITC generally entail complex transactions and voluminous evidence, and such issues are not suitable for examination under writ jurisdiction. Observing that the statutory appellate remedy under Section 107 of the CGST Act provides adequate protection to the petitioner, the Court declined to entertain the writ petition and directed the petitioner to pursue the appeal along with the requisite pre-deposit. The Court further clarified that if the appeal is filed within the extended time permitted, it shall be adjudicated on merits and shall not be rejected on limitation grounds.

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