CL International & Anr. Vs Additional Commissioner Central Tax (Delhi High Court)
The present writ petition was filed under Article 226 of the Constitution of India challenging the Order-in-Original dated 31st January, 2025 passed by the Office of the Commissioner, Central Tax (Delhi West), as well as the Show Cause Notice dated 2nd August, 2024. The proceedings arose out of intelligence gathered by the Directorate General of Goods and Services Tax Intelligence (DGGI) regarding alleged fraudulent availment of Input Tax Credit (ITC) through bogus transactions and fake invoicing without actual supply of goods.
Read SC Judgment in this case: Fraudulent ITC Allegations: SC Upholds Relegation to Statutory Appeal Due to Alternate Remedy
The impugned order alleged that several connected entities, including C.L. Products India Private Limited, M/s Gauri Global Exports & Trading, and M/s Modern Bazar, were involved. Scrutiny of registration details and filed returns revealed that these entities were allegedly non-existing, non-functional, and bogus firms, rendering the ITC inadmissible.
The Petitioner contended that relied upon documents (RUDs) were not provided and non-relied upon documents were not returned. Although a reply to the Show Cause Notice had been filed and was recorded in the impugned order, it was argued that the submissions were not properly considered by the Adjudicating Authority.
