Standard Cartons Pvt Ltd Vs Office of The Commissioner Central Tax Delhi West And Ors (Delhi High Court)
Delhi High Court has declined to intervene in a writ petition filed by Standard Cartons Pvt Ltd, which challenged a substantial penalty of Rs. 1,03,80,024 imposed under the Maharashtra Goods and Services Tax (MGST) Act, 2017. The penalty was levied for allegedly receiving “goods-less invoices” and fraudulently availing Input Tax Credit (ITC). The High Court, citing the serious nature of the allegations involving fraudulent ITC and the availability of an effective appellate remedy, directed the petitioner to pursue its case before the statutory appellate authority.
The decision, delivered on January 31, 2025 (though the order was issued on this date, the judgment was likely pronounced later), underscores the judiciary’s reluctance to exercise extraordinary writ jurisdiction in complex factual disputes, particularly those impacting the public exchequer through alleged tax evasion.
Background: Allegations of Fake Invoices and ITC Fraud
Standard Cartons Pvt Ltd, a partnership firm operating in Mumbai and Raigad, found itself embroiled in a dispute with the State Tax Department. The genesis of the penalty lies in a show-cause notice (SCN) dated August 2, 2024, issued to multiple entities, alleging widespread fake availment of Input Tax Credit (ITC).
