The 100 Most Significant Judgments on Fake ITC Under GST – Part 1 by JurisHour.
At JurisHour, we bring you the judgments on Fake ITC Under GST —a curated list for taxpayers, legal professionals, and GST practitioners.
Our selection process focuses on judgments that:
- Directly impact taxpayers and businesses through clarifications on GST law and compliance.
- Settle critical disputes in tax administration or interpretation of statutes.
- Provide valuable insights for GST lawyers, consultants, and industry leaders.
Table of Contents
The list of 100 judgments will be published in ten parts and this is the second part:
Supreme Court
Case Name : Ashutosh Garg V/S Union Of India
The Supreme Court has granted the bail to the accused involved in GST ITC fraud by looking at the custody period.
The court stated that the offence carries a maximum punishment of five years of imprisonment and the period of custody already undergone.
Andhra Pradesh High Court
Case Title: CA Akshay Jain Versus ICAI
Case No.: Writ Petition No: 30264/2024
The Andhra Pradesh High Court stayed the notification issued by the Institute of Chartered Accountants of India (ICAI) removing CA’s name from register of members who was allegedly involved in creating fake GST invoices and claiming Rs.5.08 crores as in the form of input tax credit without there being any actual supply of goods or services.
The bench of Justice Venkateswarlu Nimmagadda has observed that there shall be a stay on the publication in the Gazette of India regarding the removal of the CA’s name from the register of members. This stay is effective from today i.e., on 03.01.2025 till the date of filing an interlocutory application for interim stay along with the statutory appeal before the Appellate authority by the petitioner CA. Therefore, the petitioner, CA is at liberty to initiate a statutory appeal before the appellate authority within a period of 4 weeks.
Case Title: Manikonda Rama Rao Versus The Deputy Commissioner (CT)
Case No.: Writ Petition No.23004 Of 2007
The Andhra Pradesh High Court has held that the alienation of property took place in the year 2000 and the proceedings declaring the alienation, as void, took place in the year 2007. No steps have been taken for fixing tax liability on the respondent-company. In the absence of fixation of liability, passing an order under Section 17-A of the Andhra Pradesh Goods and Service Tax Act (APGST Act) is not a reasonable exercise of power.
Chhattisgarh High Court
Case Title: Badal Gour Versus UOI
Case No.: MCRC No. 7666 of 2024
The Chhattisgarh High Court has granted bail to accused of passing unauthorised Input Tax Credit (ITC) worth Rs. 63.37 crores based on fake bills.
The bench of Chief Justice Ramesh Sinha has observed that no incriminating has been recovered at the instance of the present applicant and the applicant was not involved in any of the acts as alleged against him consciously or otherwise and the applicant is a transgender person, the applicant is languishing in jail since 06.08.2024.
Rajasthan High Court
Case Title: Anil Kumar Versus UOI
Citation: S.B. Criminal Miscellaneous IInd Bail Application No. 6318/2024
The Rajasthan High Court, Jaipur Bench has dismissed the second bail application filed by a person accused of availing fake input tax credit (ITC) under GST Act by issuing the counterfeit bills.
The bench of Justice Praveer Bhatnagar has observed that the petitioner created seven fake companies, issued fake good-less invoices, and took credit of Rs.20,28,40,841 causing loss to the Government. The first bail application was dismissed at the stage of the charge sheet, and after that, no new facts have arrived before the Court to entertain the present second bail application.
Case Title: Vineet Jain Versus Union Of India
The Jaipur Bench of Rajasthan high Court has refused to grant bail to Input Tax Credit (ITC) amounting to 10.87 crores, on the basis of forged transactions and also manipulated the bills showing transportation of goods from Delhi to Jaipur.
The bench of Justice Praveer Bhatnagar has observed that the seizure of the fake rubber stamps of the transport company, fake E Bills purported to be demonstrated as transportation of scrap from Delhi to Jaipur coupled with the statement of the transport company owner, stating the actual route through which his truck has moved on such dates, the report of the concerned authority confirming the non-existence of the firms from whom the petitioner had received so-called scrap affirmatively validates that petitioner fraudulently caused loss to the government revenue by claiming input tax credit in tune to 10.67 crores.
Case Title: Anil Kumar Versus UOI
The Rajasthan High Court, Jaipur Bench has dismissed the second bail application filed by a person accused of availing fake input tax credit (ITC) under GST Act by issuing the counterfeit bills.
The bench of Justice Praveer Bhatnagar has observed that the petitioner created seven fake companies, issued fake good-less invoices, and took credit of Rs.20,28,40,841 causing loss to the Government. The first bail application was dismissed at the stage of the charge sheet, and after that, no new facts have arrived before the Court to entertain the present second bail application.
Allahabad High Court
Case Title: M/S Baba Industries Versus Union Of India
The Allahabad High Court has granted 10 days time to GST dept. to provide documents mentioned in Show Cause Notice (SCN) issued proposing cancellation of GST registration.
The bench of Justice Sangeeta Chandra and Justice Brij Raj Singh has observed that show cause notice that was issued to the petitioner therein on 16.05.2023 had alleged that the petitioner’s GST registration was proposed to be cancelled on account of fraud, willful misstatement or suppression of facts. However, it did not provide any specific reason as to the alleged fraud, wilful misstatement and it did not provide any clue as to the facts which were allegedly suppressed by the petitioner.
Case Title: M/S Astol Cleantech Pvt Ltd Versus State Of UP
Case No.: Writ Tax No. – 1279 Of 2024
The Allahabad High Court while staying the assessment order held that the Input Tax Credit (ITC) under Goods and Service Tax (GST) cannot be denied by citing absence of toll plaza receipt.
Case Title: M/S Anil Rice Mill Versus State Of U.P. And 2 Others
Case No.: WRIT TAX No. – 886 of 2023
The Allahabad High Court has held that the tax invoices, e-way bills are not enough to avail Input Tax Credit (ITC) under Goods and Service Tax (GST).
