Vdr Colors And Chemicals PVT. LTD. vs. Commissioner Of Delhi & Anr.
Held
The High Court declined to entertain the writ petitions, noting that while personal hearing is usually required, the petitioners were aware of the investigation and their reply was ambiguous. The Court held that factual analysis of ITC fraud cannot be undertaken in writ jurisdiction and directed the petitioners to avail the statutory appellate remedy under Section 107 of the CGST Act. An extension was granted for filing the appeal, ensuring it would not be dismissed on limitation grounds if filed with the requisite pre-deposit by January 31, 2026.
Facts
The petitioners challenged an order imposing demands and penalties for fraudulent Input Tax Credit (ITC) availment, alleging they received goods-less invoices from non-existent firms based on a DGARM report and statements. They contended that the impugned order was passed without affording them a personal hearing. The total alleged fraudulent ITC amounted to over Rs. 18 crore.
Key Issues
The key legal issues were whether the impugned order was invalid due to non-grant of personal hearing, and whether the High Court should exercise its writ jurisdiction to adjudicate factual disputes related to fraudulent ITC availment.
Sections Cited
Section 16 of the CGST Act, Section 107 of the CGST Act, Section 122(1) of the CGST Act, Section 122(3) of the CGST Act
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W.P.(C) 14291/2025 & connected matters $~1 to 3 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 23rd December, 2025 Uploaded on: 26th December, 2025 + W.P.(C) 14291/2025 & CM APPL. 58491/2025 VDR COLORS AND CHEMICALS PVT. LTD. .....Petitioner Through: Mr. Uday Gupta, Sr. Adv. with Mr. S.B. Sharma, Mr. Ramesh Kumar, Mr.
Yashwant Gahlaut & Mr.
Ankit Sharma, Advs. versus COMMISSIONER OF DELHI & ANR. .....Respondents 2 Through: Ms Vaishali Gupta Panel Counsel GNCTD and Ms Ishita Gupta, Adv.
Mr. Hussain Taqvi, Senior Panel Counsel + W.P.(C) 18199/2025 & CM APPL. 75274/2025 M/S A V METALS MARKETING PVT LTD .....Petitioner Through: Mr. S.B. Sharma, Mr. Ramesh Kumar, Mr. Yashwant Gahlaut & Mr. Ankit Sharma, Advs. versus PRINCIPAL COMMISSIONER CGST AND ANR .....Respondents 3 Through: + W.P.(C) 18280/2025 & CM APPL. 75639/2025 M/S SURENDER KUMAR JAIN .....Petitioner Through: Mr. S.B. Sharma, Mr. Ramesh Kumar, Mr. Yashwant Gahlaut & Mr. Ankit Sharma, Advs. versus PRINCIPAL COMMISSIONER CGST AND ANR ....Respondents Through: Ms. Sangita Malhotra, SPC for R-2. CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE SHAIL JAIN Signing Date:26.12.2025 17:34:45 S
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