Giftco Exports Vs Principal Commisisoner of Central Tax & Ors. (Delhi High Court)
The petitioner filed a writ petition under Article 226 of the Constitution of India challenging three separate Orders-in-Original (OIOs) issued by the Principal Commissioner and the Superintendent of CGST, Delhi North, relating to demands arising from Input Tax Credit (ITC) allegedly fraudulently availed. The Orders-in-Original challenged were OIO-1 dated 29th January 2025, OIO-2 dated 1st February 2025, and OIO-3 dated 4th February 2025. The petitioner contended that OIO-1 was passed without a Show Cause Notice, OIO-2 ignored the petitioner’s reply to SCN-2 dated 5th August 2024, and OIO-3 was issued with only a seven-day gap after SCN-3. All three orders were passed by the same Additional Commissioner, and the petitioner claimed various procedural irregularities. A pre-deposit of Rs. 30 lakhs had already been made by the petitioner.
OIO-1 arose from SCN-1 issued to M/s Reema Polychem Pvt. Ltd., following an investigation into fraudulent ITC claims by M/s Choudhary Metals and M/s Kavita Metals. The investigation revealed 23 non-existent firms issuing invoices without actual supply, affecting 408 ITC recipients, with the petitioner listed at Serial No. 185 in OIO-1. OIO-2 concerned 650 parties in the Delhi West Commissionerate where multiple bogus companies were found to have passed ITC without providing goods or services. The petitioner was at Serial No. 220. OIO-3 involved 670 parties, identifying premises in Sitaram Bazar and Naya Bazar used for generating bogus invoices, 55 non-existent suppliers, and more than Rs. 553 crore of inadmissible ITC distributed among 5,962 recipients, with the petitioner at Serial No. 95.
