GST Update

Desk of CA. Praveen Sharma – 864 Series (CAPS)

Delhi High Court – High Spirit Commercial Ventures Pvt. Ltd.

1. The Delhi High Court heard the case in hybrid mode, where the petitioner challenged a Show Cause Notice (24 July 2024) and Order-in-Original (4 February 2025).

2. The department alleged fraudulent availment and passing of ineligible ITC worth ?3.98 crore and ?4.75 crore, linked to fake firms associated with one Mukesh Jain.

3. The petitioner claimed no connection with the bogus firms and stated that the business was based in Maharashtra.

4. The department found the business premises non-existent and cited statements from other firms showing similar fake transactions.

5. The Court held that disputed factual issues must be resolved through appeal under Section 107 of the CGST Act and not by filing a writ petition.

6. It referred to earlier Delhi High Court and Supreme Court rulings holding that writs are not maintainable in cases involving fake ITC claims.

7. The petition was dismissed, but the petitioner was allowed to file an appeal by 30 November 2025 after making the required pre-deposit.

8. The appellate authority was directed to hear the appeal on merits without rejecting it for delay.
   
   LINK:CA. Praveen Sharma on Linkedin
   
   REGARDS
   CAPS