Jv Creatives Pvt. Ltd. Vs Principal Additional Director General (Delhi High Court)
In the case of Jv Creatives Pvt. Ltd. Vs Principal Additional Director General, the Delhi High Court upheld the provisional attachment of the petitioner’s bank account by the Directorate General of GST Intelligence (DGGI). The order, dated June 26, 2024, was challenged by the petitioner on the grounds that the attachment was unjustified and that they had not been provided a copy of the original attachment order.
The dispute arose following an investigation into alleged Input Tax Credit (ITC) fraud. The DGGI found that the petitioner had claimed ITC amounting to ₹26,91,938 from two suppliers—M/s Gupta Enterprises and M/s Sunrise Ventures—both of which were identified as fictitious entities. It was discovered that M/s Gupta Enterprises was purportedly operated by one Vikram, who was actually a taxi driver and not involved in any business. Similarly, M/s Sunrise Ventures was supposedly run by Shesh Nath Prasad, a fitness coach, whose identity was misused to create another fake entity.
The Commissioner of GST Intelligence decided to provisionally attach the petitioner’s bank account to safeguard the revenue, given the substantial ITC claimed from these fraudulent entities. The petitioner contested this action, arguing that they had not received the attachment order and that the action was excessive.
