Jasmeet Trading Company Vs Additional Commissioner (Delhi High Court)
Delhi High Court has declined to exercise its writ jurisdiction in a case involving alleged fraudulent availment of Input Tax Credit (ITC) by M/s Jasmeet Trading Company. The court, presiding over the petition filed under Article 226 of the Constitution of India, directed the petitioner to pursue the statutory appellate remedy available under the Goods and Services Tax (GST) regime, citing previous rulings on similar matters, including the precedent set in Mukesh Kumar Garg vs. Union of India & Ors.
Jasmeet Trading Company had challenged an Order-in-Original dated February 1, 2025, which raised demands and penalties against the firm. This order stemmed from a Show Cause Notice (SCN) issued on June 11, 2024, alleging that the company had fraudulently availed ITC to the tune of Rs. 6,12,530. The Department contended that this amount represented an undue benefit reaped by the petitioner.
Counsel for Jasmeet Trading Company raised two primary arguments against the impugned order. Firstly, it was submitted that the SCN and the subsequent impugned order were issued by different authorities. Secondly, the petitioner argued that a consolidated SCN had been issued for multiple financial years, with a corresponding consolidated order, an issue currently under consideration by the High Court in W.P.(C) 4392/2025 titled Quest Infotech Pvt. Ltd. & Anr. v. Union of India.
