Navneet Bansal vs. Additional Commissioner CGST Delhi North
Held
The High Court dismissed the writ petition, holding that it would not ordinarily exercise its extraordinary writ jurisdiction in cases involving fraudulent availment of CENVAT/Input Tax Credit due to complex factual analyses required. However, it granted the petitioner liberty to file a statutory appeal under Section 107 of the CGST Act by January 31, 2026, directing the appellate authority to adjudicate it on merits without dismissing it on grounds of limitation.
Facts
The petitioner challenged an Order-in-Original imposing a penalty of Rs. 1.63 Crores for issuing fraudulent invoices without actual supply of goods, thereby facilitating ineligible CENVAT Credit. The petitioner's statement admitting the fraud was recorded but not retracted, and he failed to file a reply on merits or participate in the adjudication proceedings, only seeking copies of relied-upon documents.
Key Issues
Whether the High Court should exercise its writ jurisdiction to quash an order imposing a penalty for fraudulent CENVAT credit availment when the petitioner failed to participate in adjudication or retract his admission, and whether the non-supply of Relied Upon Documents (RUDs) warranted intervention.
Sections Cited
Article 226, Rule 26 of Central Excise Rules 2002, Section 174 of CGST Act 2017, Section 16 of CGST Act, Section 107 of CGST Act
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT Prathiba M. Singh, J.
This hearing has been done through hybrid mode.
The present petition has been filed by the Petitioner- Navneet Bansal under Article 226 of the Constitution of India, inter alia, assailing the Order- in-Original dated 28th November 2024 (hereinafter, ‘impugned order’) passed by the Respondent-Additional Commissioner, CGST Delhi North. The same arises out of Show Cause Notice (hereinafter ‘SCN’) dated 7th May, 2021. 3. The background of the present case is that Directorate General of GST Intelligence (hereinafter, ‘DGGI’), Delhi Zonal Unit had received intelligence in respect of availment of ineligible CENVAT Cr
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