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HC dismissed the writ petition challenging tax credit demand, ...


Tax Credit Challenge Dismissed: Systematic Fraud Allegations Expose Fictitious Input Tax Credit Claims Under Scrutiny

June 5, 2025

Case Laws     GST     HC

HC dismissed the writ petition challenging tax credit demand, finding systematic fraudulent ITC availing by the petitioner. The key supplier M/s Fortune Graphics Limited was untraceable, with its director admitting no actual goods supply occurred. While declining immediate judicial intervention, the HC permitted the petitioner to pursue appellate remedies under Section 107, mandating pre-deposit by 15th July, 2025. The court noted the need for detailed factual scrutiny regarding specific entity's ITC claims, which exceeded writ jurisdiction's scope. The petition was disposed of, allowing potential appellate challenge subject to prescribed legal procedures.

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