Montage Enterprises Private Limited Vs Central Goods And Services Tax Delhi North & Ors. (Delhi High Court)
The Delhi High Court has declined to exercise its writ jurisdiction in a petition filed by Montage Enterprises Private Limited challenging a Goods and Services Tax (GST) demand exceeding ₹550 crores. The court questioned the petitioner’s conduct during the departmental proceedings and directed the firm to avail the statutory appellate remedies instead.
The case stems from an investigation by the Central Goods and Services Tax, Delhi North, into alleged GST evasion involving 286 entities, including Montage Enterprises. According to the show cause notice (SCN) issued on July 30, 2024, the department alleged that Montage Enterprises was issuing bogus invoices for packaging material/laminates to non-existent or non-operational firms. This material was purportedly diverted to paan masala and tobacco manufacturing units. The department also claimed that the petitioner’s directors and promoters had established other companies used for showing sales based on these bogus invoices.
Upon learning of the investigation, the petitioner is stated to have initiated insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, for the firms allegedly used to show bogus sales. The department contended that various depots, transporters, and firms involved were bogus and operational only for a short period, with their GSTINs subsequently cancelled.
