2025 (5) TMI 632 - HC - GST

Availment o fake ITC - SCN issued u/s 74 of the CGST Act 2017 was not considered - HELD THAT - It is noticed that the Petitioner has already deposited Rs. 2.5 crores with the Department on 16th September 2020 which forms a substantial part of the 10% pre-deposit which has to be furnished mandatorily in order to file an appeal under Section 107 of the Central Goods and Service Tax Act 2017. Accordingly let the Petitioner approach the appellate authority under Section 107 of the CGST Act along with the remaining pre-deposit amount within 30 days. If the Petitioner approaches the appellate authority with the pre-deposit as directed the appellate authority shall consider the interim reply filed by the Petitioner of 15th April 2024 as also any other documents which the Petitioner may wish to submit in support of his case. After such consideration the appellate authority shall adjudicate the appeal on merits. Petition disposed off.

Summary

The Delhi High Court, in W.P.(C) 5703/2025, addressed a challenge by M/s KMG Industrial Traders Pvt. Ltd. to the Order-in-Original No. 84/ADJDGG1/DN/2024-25 dated 27th January 2025, wherein the Principal Commissioner of Central GST, Delhi North, demanded Rs. 27.15 crores alleging fake input tax credit (ITC) claims from five firms under GST returns.The Petitioner contended that (i) their reply dated 15th April 2024 to the show cause notice issued under Section 74 of the CGST Act, 2017 was not considered, and (ii) personal hearing notices were not duly served within the stipulated time. The Department countered that personal hearing notices were repeatedly served and that the impugned order is appealable, urging the Petitioner to seek remedy before the appellate authority.The Court noted the Petitioner had deposited Rs. 2.5 crores, a substantial portion of the mandatory 10% pre-deposit required under Section 107 of the CGST Act for filing an appeal. The Court directed the Petitioner to approach the appellate authority within 30 days with the balance pre-deposit. The appellate authority was instructed to consider the Petitioner's interim reply of 15th April 2024 and any additional documents, and adjudicate the appeal on merits. The Court held that if the appeal is filed within the prescribed time and pre-deposit, it "shall not be dismissed on the ground of limitation" and must be decided on merits.The petition was disposed of accordingly, leaving all rights and remedies open to the Petitioner.