The Delhi High Court while imposing the cost of Rs. 50,000 held that writ jurisdiction cannot be invoked to settle private grievances against private parties for illegally claiming GST ITC.
The bench of Justice Yashwant Varma and Justice Ravinder Dudeja has observed that as is ex facie evident from the record, the petitioner has a private grievance against the private respondent. Even if it were the case of the private respondent having violated the provisions of the Central Goods and Services Tax Act, 2017, the only remedy that was available for the petitioner to pursue was to make a complaint before the competent authority.
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Background
The petitioner has filed the writ petition and sought the directions upon the the Principal Chief Commissioner of CGST & Central Excise, Delhi Zone, Principal Commissioner (State Tax – GST), Government of NCT of Delhi, Department of Trade & Taxes for taking actions against Chirag Gupta for illegally claiming the Input Tax Credit of over Rs. 40,22,532 without making any payment to the Petitioner in sheer violation of Section 16 of the Central Goods and Services Tax, 2017 read with 36 of the Central Goods and Services Tax, Rules 2017.
Conclusion – Illegally Claiming GST ITC
The court held that none of the facts which are alleged would have possibly constituted sufficient grounds to invoke the jurisdiction under Article 226 of the Constitution.
The court dismissed the writ petition with costs quantified at INR 50,000. The costs shall be deposited with the Delhi State Legal Services Authority.
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Case Details
Case Title: Mehul Mamgain Versus Union Of India
Case No.: W.P.(C) 4713/2024
Date: 16.10.2024
Counsel For Petitioner: Abhijit Mishra
Counsel For Respondent: Arnav Kumar
