Harsh Wadhwani Vs Additional Director General Directorate General of GST Intelligence (Chhattisgarh High Court)
The Chhattisgarh High Court heard a petition filed by Harsh Wadhwani concerning an investigation by the Directorate General of GST Intelligence (DGGI) into alleged fake Input Tax Credit (ITC) claims. The petitioner, operating a trading business under M/s. Vijay Laxmi Trade Company, sought to quash the notices and summons related to the inquiry, and requested the withdrawal of a negative balance/block created in their Electronic Credit Ledger (ECL).
I. Background of the Dispute
The investigation stemmed from the petitioners’ GSTR-3B return filed for the financial year 2024-2025, where they claimed ITC. Upon scrutiny, the DGGI found that the return was allegedly based on fake invoices, indicating evasion of tax by obtaining and passing fake ITC. The investigation specifically concerned transactions with two firms: M/s. Taj Enterprises and M/s. Agastya Enterprises.
The DGGI issued a notice under Section 70 of the Central Goods and Services Tax Act, 2017, followed by subsequent summons. The petitioner responded to the initial notice but contended that the subsequent summons were vague, as they directed the petitioner to appear for oral evidence without specifying the relevant parties, though the first summons had named the two firms.
