SD Polymers Vs Commissioner of Central Goods And Service Tax And Anr (Delhi High Court)
Delhi High Court held that writ involving matter of availment of fraudulent Input Tax Credit [ITC] under GST not entertained since due to availability of appellate remedy as the matter involves several factual issues and the concept of ITC by itself involves a series of transactions.
Facts- The present petition has been filed by the Petitioner under Article 226 of the Constitution of India, inter alia, assailing the Show Cause Notice dated 5th August, 2024 issued for the Financial Year 2017-18. The Petitioner further challenges the Order-in-Original dated 1st February, 2025 along with the Form DRC-07 dated 9th February, 2025. Vide the impugned order a demand to the tune of Rs. 2,18,24,370/- has been raised against the Petitioner.
Notably, the allegation in the said SCN is that two individuals namely Mr. Rajesh Jindal and Mr. Adesh Jain had created, controlled and managed a large number of fake firms, which were opened in the names of different individuals and were not genuine businesses or business persons.
Conclusion- In all these matters in case of availment of fraudulent ITC, there are several factual issues, which would need to be looked into, which cannot be adjudicated in a writ petition. Hence, this Court does not deem it appropriate to delve into the facts of this case under writ jurisdiction as the concept of ITC by itself involves a series of transactions, which would have to be analyzed and, thereafter, the decision is to be taken.
