9911796707
TMI Blog2025 (5) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... isposed of. W.P.(C) 6006/2025 3. The present petition has been filed by the Petitioner - M/s Mahesh Fabrinox Pvt. Ltd. (hereinafter "the Petitioner Firm") under Articles 226 and 227 of the Constitution of India, challenging the Order-in-Original dated 1st February, 2025, passed by the Additional Commissioner, Central Goods and Services Tax (hereinafter "the impugned order"). Vide the impugned order a demand has been raised against the Petitioner Firm for fraudulent availment of Input Tax Credit (hereinafter "ITC"). 4. The grievance of the Petitioner Firm is that the reply was filed by the Petitioner Firm, however, the same was not considered and no personal hearing was given prior to passing of the impugned order. Ld. Counsel for the Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd raised by the said firms without supply of any goods and on the strength of the said invoices, ITC was availed. The Petitioner Firm is one such firm which had raised invoices against one of the fake firms set up by Mr. Karan Kumar Agarwal and was passed on the benefit of ITC. 9. The Court has perused the reply of the Petitioner Firm. The stand of the Petitioner Firm in the said reply is that it has had no dealings with Mr. Karan Kumar Agarwal. The relevant portion of the said reply reads as under: "Respected Officer, We are in receipt of show cause notice in form No. CST DRC 01, dated 04/08/2024, issued under section 74 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the 'CGST Act') regarding ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 93/15, Gali No. 1, Mundka Industrial Area, South Side, New Delhi-110041, was under the process of installation and only machinery and other assets were being purchased. Therefore, question of purchasing goods from the parities mentioned in the SCN and availing ITC should not arise. Copy of summary of supply declared and ITC claimed along with copy of GSTR-2A is enclosed herewith. In view of this it is very kindly requested to please vacate the notice. for Mahesh Fabrinox Private Limited." 10. However, in contrast to this position, the impugned order records as under: "b. In pursuance of summons dated 06.08.2022 voluntary statement of Sh. Vishu Goyal director in M/s Mahesh Fabrinox Private Limited was recorded where under the interalia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order also reveals a complex maze, which has been created by the main person i.e., Mr. Karan Kumar Agarwal, in order to avail fraudulent ITC by showing sale/purchase of goods, when actually in reality, there was no sale or purchase or movement of goods. 14. This Court in the present writ petition is exercising jurisdiction under Article 226 of the Constitution of India and when there is an allegation of such large-scale fraud, to the tune of more than Rs. 56.2 crores, being committed with the involvement of a total of 527 firms including the Petitioner Firm, the Court has to be circumspect in exercise of its powers. 15. This Court notices a pattern in which such persons, who had either availed of fraudulent ITC or have enabled th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Director of the Petitioner Firm, which is recorded in the impugned order, the Court is not inclined to entertain the present writ petition. 20. In the opinion of the Court, prima facie, considering the contradictory stand taken in the reply and the statement of the Petitioner's Director, the stand of the Department cannot be held to be incorrect or untenable. The impugned order does no warrant interference by this Court, in exercise of writ jurisdiction. 21. In the facts and circumstances of this case, the present petition is dismissed with costs of Rs. 1 lakh to be paid to the Delhi High Court Bar Association within two weeks. 22. If the costs are not paid, Mr. Vishu Goyal, Director of the Petitioner Firm, shall remain present in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
