High Precision Corps Vs Commissioner 0f State Goods And Service Tax (Delhi High Court)
Delhi High Court has underscored the severe impact of fraudulent Input Tax Credit (ITC) claims on the Goods and Services Tax (GST) regime, reiterating that its extraordinary writ jurisdiction under Article 226 of the Constitution should be exercised sparingly in such cases. The ruling came in the case of High Precision Corps Vs. Commissioner of State Goods And Service Tax, where the petitioner challenged a demand of 竄ｹ65,21,410/- arising from alleged fraudulent ITC claims.
The petitioner, High Precision Corps, contested an order dated February 28, 2025, which confirmed a demand based on a Show Cause Notice (SCN) issued on November 18, 2024. The SCN primarily focused on two heads: “Under declaration of ineligible Input Tax Credit (ITC)” and “ITC claimed from cancelled dealers, returned defaulters and tax non-payers.” While the adjudicating authority dropped the demand related to the first head, agreeing with the petitioner’s submissions and GST portal information, it upheld the demand under the second head. The reason cited was that the petitioner’s suppliers were found to be non-existent and fraudulent, implying no actual supply of goods and services had taken place.
Petitioner’s Argument and Court’s Stance
