2025 (5) TMI 1678 - HC - GST

SCN not uploaded on the GST Portal - Allegations of availment of fraudulent Input Tax Credit ( ITC ) - challenging the the impugned order passed without notice for personal hearing - HELD THAT - A perusal of the impugned order would show that personal hearing notices have in fact been issued and some of the parties have also appeared. Considering the Petitioner did not even disclose the receipt of the SCN and has concealed the same from this Court we are not inclined to entertain the present writ petition seeking exercise of writ jurisdiction. Moreover the case involves allegations of availment of fraudulent Input Tax Credit (hereinafter ITC ) where several parties in collusion with each other have enabled false availment of ITC by various entities namely M/s S R Impex M/s S R International M/s R K Enterprises M/s Vikas Impacts M/s SK Traders totalling to more than 100 crores. Thus this Court is of the opinion that the impugned order being an appealable order the Petitioner shall approach the appellate authority under Section 107 of the Central Goods and Service Tax Act 2017. The Petitioner is permitted to file the appeal by 15th July 2025. Petition is disposed of in these terms.

Summary

The Delhi High Court, presided by Justices Prathiba M. Singh and Rajneesh Kumar Gupta, dismissed the writ petition filed by M/s AS Enterprises challenging the order dated 4th February 2025 issued by the Principal Commissioner, Central GST. The petitioner contended non-receipt of the show cause notice (SCN) dated 24th May 2022; however, the Court noted that the SCN was emailed to Mr. Ashish Narula, and personal hearing notices were issued, with some parties appearing. The Court observed that the petitioner concealed receipt of the SCN and declined to exercise writ jurisdiction. Given the allegations of fraudulent availment of Input Tax Credit (ITC) exceeding Rs. 100 crores involving multiple entities, the Court held that the petitioner must seek remedy before the appellate authority under Section 107 of the Central Goods and Service Tax Act, 2017. The petitioner was permitted to file an appeal by 15th July 2025 with the requisite pre-deposit, after which the Appellate Authority shall adjudicate the matter on merits. The petition and all pending applications were disposed accordingly.