Malik Traders Through Its Proprietor Vs Principal Commisisoner of Central Tax & Ors. (Delhi High Court)
Delhi High Court held that writ petition not entertained as matter related to fraudulent availment of Input Tax Credit [ITC]. Accordingly, petitioner directed to avail appellate remedy and file an appeal u/s. 107 of CGST Act.
Facts- The present petition has been filed inter alia challenging the impugned order in original dated 28th January, 2025 in respect of Financial Year 2017-18 to 2021-22 and impugned Show Cause Notice dated 24th July, 2024 in respect of Financial Year 2018-19 and 2019-20.
This is a case of fraudulent availment of Input Tax Credit. The Department after conducting investigation in respect of 108 firms has issued the impugned order and impugned SCN raising certain demands against the Petitioner Firm.
Conclusion- Delhi High Court in Mukesh Kumar Garg vs. Union of India & Ors., held that in case of fraudulent availment of ITC through bogus invoicing, writ petitions ordinarily are not to be entertained.
Held that since the present matter relates to fraudulent availment of ITC and the impugned order is an appealable order, the Petitioner Firm should avail of its appellate remedy. Accordingly, the Petitioner Firm is granted an opportunity to file an appeal under Section 107 of the Central Goods and Services Tax Act, 2017 before the Appellate Authority along with the requisite pre-deposit.
