Finding that there is concealment of material facts, not even a whisper of the DGGI investigation, and the huge amount of the Input Tax Credit (ITC) fraudulently availed of, despite the petitioner having complete knowledge of the same, the Delhi High Court opined that there is more than what meets the eye in the matter.
Accordingly, the Court dismissed the petition with costs of Rs. 1 lac to be deposited with the Delhi High Court Staff Welfare Fund, and listed the matter for compliance on December 22, 2025.
The Division Bench comprising Justice Prathiba M Singh and Justice Shail Jain observed that the petition is bereft of facts, as the counsel for the bank has placed on record the freezing order dated October 01, 2024, which records that debit over and above Rs. 1939.66 lacs only shall be allowed.
Further, the Bench noted from the physical inspection report of the premises submitted by the DGGI, which revealed that the premises were non-existent. Therefore, while listing the matter, the Bench pointed out that in respect of the freezing order, the petitioner can always file objections under Rule 159(5) of the CGST Rules.
Briefly, the petitioner had challenged the order of attachment of his bank account, which was frozen on the instructions of the DGGSTI without providing any order or notice in respect of the said action. The petitioner alleged that they became aware of the said action only from their bank after a lapse of more than one year; however, neither the account has been unfrozen nor has any notice been issued.
The Department, however, negated this contention, claiming that only after the DGGI had commenced investigation showing substantial Input Tax Credit (ITC) had been availed by the petitioner running into crores of rupees, the summons were issued and the statement was recorded in May 2025.
Appearances:
Advocates Udit Bakshi, Bhwesh Bhola, and Piyush Kumar, for the Petitioner/ Taxpayer
Advocate Anurag Ojha, along with Advocates Dipak Raj, Ayushman, Rajeev Tomar, and Rashmi, for the Respondent/ Revenue
