Acme India Vs Union of India (Delhi High Court)
The Delhi High Court addressed a petition filed by Acme India (Petitioner) under Article 226 of the Constitution of India, challenging an Order-in-Original dated February 4, 2025, passed by the Commissioner of Central Tax, CGST Delhi West Commissionerate.
The challenged order arose from a Show Cause Notice (SCN) dated July 26, 2024, issued under Section 74(1) of the Central Goods and Services Tax Act, 2017 (CGST Act). The SCN alleged that the GST Department had received information that one Shri. Krishan Pal Singh, alias P. Singh, had issued invoices without any underlying supply from fake firms, with various accomplices assisting him. The Petitioner, M/s Acme India, along with M/s Vibgyor Services, were identified as the end-users of these fake firms. The core allegation was that the Petitioner had availed ineligible Input Tax Credit (ITC), in an operation allegedly controlled by Shri. Chander Prakash Pabreja.
The allegations against M/s Acme India stated that the firm availed ineligible ITC amounting to ₹11,18,77,922 /-. The Petitioner had already made a deposit of ₹3,94,33,040/- against this amount. The other firm, M/s Vibgyor Services, was stated to have availed ITC of ₹8,09,33,534/-, with a deposit of ₹3,12,27,737 /- already made.
