Sanskriti Exim Private Limited Vs Directorate General of GST Intelligence (Delhi High Court)
Summary: The Delhi High Court dismissed the writ petition filed by Sanskriti Exim Private Limited challenging proceedings initiated by the Directorate General of GST Intelligence, Delhi Zonal Unit (DGGI/DZU), including Show Cause Notice dated 29.07.2024 and consequential Order-in-Original dated 31.01.2025. The proceedings concerned alleged fraudulent availment and utilisation of Input Tax Credit (ITC) on invoices issued by non-existent and fictitious entities, utilisation of such ITC towards payment of IGST on exports and consequential IGST refunds. The DGGI Show Cause Notice covered FY 2017-18 (July onwards) to FY 2019-20 and proposed recovery of Rs.7,81,78,980/-, comprising IGST of Rs.4,46,05,885/-, CGST of Rs.1,67,86,547/- and SGST of Rs.1,67,86,547/-, besides interest and penalties.
The Petitioner contended that the DGGI proceedings were barred by Section 6(2)(b) of the CGST Act because State GST authorities had already initiated proceedings under Section 73 of the DGST Act concerning ITC for FY 2017-18 and FY 2018-19. The Petitioner also challenged the consolidated Show Cause Notice covering multiple financial years and relied upon DGGI guidelines dated 08.02.2024 and decisions including Toyota Kirloskar Motors Pvt. Ltd. v. Union of India, Rajesh Mittal v. Union of India and M/s Aastha Apparels Pvt. Ltd. v. Directorate General of GST Intelligence & Ors. The Respondents raised the preliminary objection that the writ petition should not be entertained because an efficacious statutory appeal under Section 107 of the CGST Act was available against the Order-in-Original.
