Treco Wire India Pvt.Ltd Vs Commissioner of Central Goods And Service Tax And Ors (Delhi High Court)
Delhi High Court held that Petitioner was clearly hand-in-glove with M/s. Balaji [non-existing supplier] and has enabled loss to the exchequer by fraudulently availing ITC without actual supply of goods or services. Accordingly, writ dismissed and order blocking of ITC in electronic cash ledger upheld.
Facts- An investigation was conducted by the Directorate General of GST Intelligence against various bogus and fake suppliers. One such supplier was M/s Balaji Sales Corporation. During the course of investigation, the concerned proprietor of M/s. Balaji was issued summons at its registered place of business, and inspection was sought to be conducted on the residential premises of the said proprietor. However, both the said addresses were found to be untraceable. Accordingly, it was realised that the said firm was not operational and non-existent indulging in passing-on of fraudulent Input Tax Credit.
Notably, one of the beneficiaries of M/s Balaji was found to be the Petitioner- M/s Treco Wire India Private Limited. The analysis of GSTR 2A of the Petitioner, as per the GST Department, revealed that the Petitioner had availed fraudulent ITC to the tune of Rs.29,90,898/- which was passed on to it by M/s Balaji. It is stated that pursuant to the impugned order being passed, the electronic cash ledger of the Petitioner has also been blocked on 13th January, 2025.
