Navendu Aggarwal vs. Director General Of Goods And Services Tax Intelligence & Anr.

W.P.(C)/14957/2024HC DelhiGSTCNR DLHC01073338202428 October 2024Bench: HON'BLE MR. JUSTICE SANJEEV NARULA2 pages

For Petitioner: Mr. Vivek Kumar Tandon, Ms. Mamta Tandon, Mr. Prerna Tandon, Mr. Harshit S. Gahlot and Mr. Mayank Tiwari, AdvocatesFor Respondent: Mr. Harpreet Singh, SSC with Ms. Suhani Mathur and Mr. Shivang Chawla, Advocates

AI SummaryRemanded

Facts

The Petitioner, Navendu Aggarwal, approached the Delhi High Court seeking payment of a reward. He alleged that on February 24, 2021, he provided information to the Director General of Goods and Services Tax Intelligence (DGGI) and another respondent authority regarding two companies, M/s Mi2c Security & Facilities Private Limited and M/s Prehari Cyber Security & Facilities Private Limited. The Petitioner claimed these companies had withheld tax and engaged in fraudulent GST collection, with an alleged amount of INR 40 to 50 crores. The information provided was stated to be instrumental in a subsequent raid and recovery from these companies. The Petitioner had previously communicated his request for the reward on January 22, 2023, but received no response. The DGGI had also issued a communication on August 1, 2022, detailing the pending liability of evader companies.

Held

The Court held that the Respondent No. 1 (Director General of Goods and Services Tax Intelligence) must take a decision on the Petitioner's request for a reward. Without delving into the merits of the case, the Court treated the writ petition as a representation from the Petitioner. The Court directed Respondent No. 1 to consider the Petitioner's request and make a decision within a period of six weeks from the date of the order. The Court explicitly stated that all rights and contentions of both parties were left open. If the Petitioner's case was found to be meritorious, Respondent No. 1 was free to consider the request for the release of an interim reward amount. No specific issue was left undecided, but the ultimate entitlement to the reward was left for the Respondent to decide.

Key Issues

1. Whether the Petitioner is entitled to a reward under the Guidelines for Grant of Reward to Informers and Government Servants, 2015, for providing information that led to the recovery of GST dues from certain companies? The Petitioner argued that he provided actionable intelligence to the respondents regarding tax evasion and fraudulent GST collection by two specific companies. He contended that this information proved useful, leading to a raid and recovery of a substantial amount. The Petitioner relied on the respondents' own communication dated August 1, 2022, which delineated the pending liability of evader companies, implying the efficacy of his tip-off. He further argued that his subsequent request for the reward on January 22, 2023, had not been addressed. The Respondents' contentions were not recorded in the judgment.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~70 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 14957/2024, CM APPL. 62761/2024 NAVENDU AGGARWAL .....Petitioner Through: Mr. Vivek Kumar Tandon, Ms. Mamta Tandon, Mr. Prerna Tandon, Mr. Harshit S. Gahlot and Mr. Mayank Tiwari, Advocates. versus DIRECTOR GENERAL OF GOODS AND SERVICES TAX INTELLIGENCE & ANR. .....Respondents Through: Mr. Harpreet Singh, SSC with Ms. Suhani Mathur and Mr. Shivang Chawla, Advocates. CORAM: HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R %

28.10.

2024

The Petitioner is aggrieved by the non-payment of the reward amount by the Respondents, asserting that he is entitled for the same under the Guidelines for Grant of Reward to Informers and Government Servants, 2015. 2. It is contended that on 24th February, 2021, the Petitioner informed the Respondents about two companies namely, M/s Mi2c Security & Facilities Private Limited and M/s Prehari Cyber Security & Facilities Private Limited, who allegedly withheld tax and engaged in fraudulent GST collection amounting to INR 40 to 50 crores. The said information proved to be helpful and upon a raid conducted, substantial amount was recovered This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/11/2024 at 11:25:36

from the aforesaid companies. In this regard, the Petitioner relies upon the communication dated 1st August, 2022 issued by the Respondents delineating the pending liability of evader companies.

Subsequently, Petitioner requested for the reward through communication dated 22nd January, 2023, however, no response has been forthcoming by the Respondents.

Having considered the aforenoted facts, this Court is of the opinion that Respondent No. 1 must take a decision on the Petitioner’s request.

For this purpose, without going into the merits of the case, the writ petition is disposed of with a direction to Respondent No. 1 to consider the instant petition as a representation of the Petitioner and take a decision thereon within a period of six weeks from today.

All rights and contentions of the parties are left open. In case the Petitioner’s case is found to be meritorious, Respondent No. 1 shall be free to consider the request for release of interim reward amount.

Accordingly, the present petition, along with pending application, is disposed of.

SANJEEV NARULA, J OCTOBER 28, 2024 nk This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/11/2024 at 11:25:36

Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.