Case Law Details
Aakash Gupta Vs Commissioner of Delhi Goods And Services Tax & Ors. (Delhi High Court)
In a significant ruling, the Delhi High Court issued a stay on the proceedings against Aakash Gupta in a case concerning the misuse of Delhi Value Added Tax (DVAT) registration for availing wrongful Goods and Services Tax (GST) Input Tax Credit (ITC). This case, Aakash Gupta Vs Commissioner of Delhi Goods And Services Tax & Ors., puts a spotlight on the complexities and potential vulnerabilities within the transition framework from DVAT to GST.
The petitioner, Aakash Gupta, was accused in a Show Cause Notice dated 27th February 2023, of wrongfully availing input tax credit, a crucial component of the GST system that allows businesses to reduce their tax liability by the amount of GST paid on purchases. The counsel for the petitioner argued that Gupta was registered under the DVAT Act, 2004, prior to the enactment of the CGST Act, 2017, and had applied for cancellation of his DVAT registration without seeking migration to the GST scheme.
It emerged that an unauthorized use of Gupta’s credentials led to the availing of input tax credit, suggesting a breach or misuse of the system. The respondents have been directed to trace out individuals who allegedly used the petitioner’s DVAT Registration for migrating to the GST Scheme fraudulently. The petitioner’s stance is supported by the fact that his DVAT Registration was officially cancelled on 1st April 2017, indicating no intention to migrate to GST.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
