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

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

• Asstt. Commissioner of State Tax v. Commercial Steel Ltd. [2021] 130 taxmann.com 180/88 GST 799/52 GSTL 385 (SC) (para 10)
• Mukesh Kumar Garg v. Union of India [2025] 174 taxmann.com 638/98 GSTL 419 (Delhi) (para 11)
• Sheetal and Sons v. Union of India [2025] 175 taxmann.com 597 (Delhi) (para 12)
• MHJ Metaltechs (P.) Ltd. v. Central GST Delhi South [2025] 174 taxmann.com 1277/110 GST 288/99 GSTL 446 (Delhi) (para 13)
• Metal Techs v. Central GST, Delhi South [2025] 179 taxmann.com 254 (SC) (para 14)
• Giftco Exports v. Principal Commissioner of Central Tax [W. P. (C) No. 13979/2025, dated 11-9-2025] (para 15).