Case Law Details
Nirdosh Kumar Sadh Vs Commissioner, Delhi Goods and Services Tax (Delhi High Court)
The Hon’ble Delhi High Court in the case of Nirdosh Kumar Sadh v. Commissioner, Delhi Goods and Services Tax [W.P. No. 6808 of 2024 dated May 21, 2024], granted interim protection from possible coercive action on the part of the Department in the matter wherein it has been alleged that the third person has misused the GST number and login credentials without the knowledge of the Assessee.
Facts:
Nirdosh Kumar Sadh (“the Petitioner”), filed a writ petition against order dated April 09, 2024 (“Impugned Order”) passed by the Revenue department (“the Respondent”). The Petitioner contended that he had applied for registration and within a few weeks shut down his business as he was not in a position to carry out any business transaction and file the return. Further, it came to the knowledge of the Petitioner that the GST registration and login credentials had been misused and a high amount of ITC was availed in the name of the Petitioner. After that, the Petitioner informed the proper officer and police to take appropriate action. Also, the email and mobile no. submitted at the time of registration have been changed without the knowledge and information of the Petitioner.
Held:
The Hon’ble Delhi High Court in W.P. No. 6808 of 2024 vide order dated May 21, 2024, granted interim protection from possible coercive action on the part of the Respondent. The Hon’ble High Court further directed the Police authorities and the Respondent to file the affidavit informing the Court regarding action taken in the aforesaid matter and listed the matter for further hearing.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Petitioner impugns order dated 09.04.2024 whereby a demand has been created against the petitioner. Learned counsel for the petitioner submits that the petitioner had applied for a GST registration and within a few weeks shut down his business because he was not able to carry on the same and has not carried out any business transactions or filed any return.
2. He submits that in October, 2019 petitioner became aware that his GST number and credentials had been misused and huge Input Tax Credit (ITC) was availed in the name of the petitioner. He submits that he immediately informed the Proper Officer as also the Police for taking an appropriate action, however, no action appears to have been taken. He further submits that the petitioner never logged in or created any on line credentials pursuant to the GST registration and his online credentials have been misused by some third party. He further submits that the e-mail address and phone number with which petitioner had registered also appears to have been changed on the online portal without the knowledge and information to the petitioner.
3. Issue notice. Notice is accepted by learned counsel appearing for the respondents, who prays for time to take instructions.
4. Respondents shall file an affidavit disclosing:
(i) The application form filed by the petitioner at the time of the initial registration.
(ii) The e-mail address and mobile number mentioned by the petitioner at the time of applying for GST registration.
(iii)In case, the e-mail address and mobile number were subsequently changed, the date and time when the same was changed and the manner in which the change is effected on the portal i.e. inter alia by sending an alert on the registered mobile and e-mail address.
(iv) The date and time when the logging credentials were created for the said GST number and the manner in which the same was created.
(v) The registered bank account mentioned by the petitioner at the time of initial registration.
(vi) The transactions that were recorded, as to whether the same was recorded from the bank account of the petitioner or from a third party’s bank account and if from a third party’s bank account the details thereof.
5. Respondents shall also indicate as to what action was taken by the Proper Officer on the compliant made by the petitioner in October, 2019.
6. Respondent No. 4 shall also file an affidavit indicating the steps taken shall on the complaint made by the petitioner to the SHO, Police Station, Krishna Nagar on 05.10.2019 vide DD No. 42D and to the Deputy Commissioner of Police, Shahdara District, Delhi and delivered on 07.10.2019.
7. List on 19.07.2024.
8. In the meantime, no coercive action shall be taken against the petitioner pursuant to order dated 09.04.2024.
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