Mangalam Enterprises Vs State of Bihar (Patna High Court)
Patna High Court has declined to interfere in a case involving alleged Input Tax Credit (ITC) fraud amounting to over Rs 3 crore, dismissing a writ petition filed by Mangalam Enterprises. The court found no prima facie grounds to exercise its extraordinary writ jurisdiction under Article 226 of the Constitution of India, noting the existence of an alternative statutory remedy.
Mangalam Enterprises, a GST-registered firm engaged in the business of biscuits and bakery items, sought the quashing of an order issued under Section 74(9) of the Bihar Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017, demanding a total of Rs 3,03,43,572.36/-. The petitioner claimed to be a victim of online fraud.
According to the petitioner’s submissions, they contacted one Mr. Sampat Kumar via social media for a business loan. It was alleged that Mr. Sampat Kumar requested the petitioner’s GST number, login ID, and password under the guise of facilitating the loan. Subsequently, the petitioner discovered that their GST ID had been used to extend Input Tax Credit to five companies to the tune of over Rs 3 crore in January. A complaint was lodged with the National Cyber Crime Reporting Portal on May 25, 2024, approximately three months after the alleged fraud came to light.
