- The Delhi High Court declined a writ petition involving 160 firms accused of issuing fake invoices without actual goods.
- The fraud involved Rs. 8,393 crores in taxable value and over Rs. 1,000 crores in wrongful Input Tax Credit.
- Investigation showed these firms were linked by the same PAN, mobile numbers, and email IDs, forming a network of fake entities on the GST Portal.
- The assessee argued the case was resolved in 2022 with a dropped demand of Rs. 16 lakhs, but the Court noted the current case involved a larger fraud network.
- The High Court stated the current case is a broader and more serious fraudulent ITC scam, different from the earlier case.
- The Court advised the petitioner to approach the Appellate Authority as the demand order is appealable, allowing adjustment of the earlier pre-deposit against new proceedings.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
