![100 Case Laws On Fake ITC Under GST [Along With Judgement Copy] – PART 3](https://www.jurishour.in/wp-content/uploads/2025/04/ITC-FRAUD.webp "ITC FRAUD")
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.
The list of 100 judgments will be published in ten parts and this is the third part:
Delhi High Court
The Delhi High Court has quashed the order demanding Rs.5,65,91,691 in a case where it was alleged that the petitioner has wrongly availed of excess Input Tax Credit (ITC).
The bench Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the only basis for rejecting the ITC is the mention of the Bombay office GSTN instead of the Delhi office GSTN. Substantial loss would be caused to the Petitioner if the credit is not granted for such a small error on behalf of the supplier.
The Delhi High Court while pointing out that the mismanagement of arrest process by Director General of GST Intelligence (DGGI) declared the arrest of person accused of wrongful Input Tax Credit (ITC) availment illegal citing that the grounds of arrest were not communicated to the accused.
Bombay High Court
The Digital Payment Solution Giant, PayU has challenged the show cause notice (SCN) issued by the Directorate General of GST Intelligence (DGGI) before Bombay High Court. The show cause notice alleges that PayU has availed the wrongful Input Tax Credit (ITC) worth Rs. 38 Crores.
The bench of Justice M.S. Sonak and Justice Jitendra Shantilal Jain while dismissing the petition of PayU asked PayU to file a reply to the show cause notice before the adjudicating authority.
Gujarat High Court
In a major relief to Patanjali Foods, the Gujarat High Court has upheld the Rs.1.7 Crore utilised Input Tax Credit (ITC) refund and rejected the department’s recovery.
Gauhati High Court
The Gauhati High Court while granting bail to the accused of GST evasion by falsely claiming Input Tax Credit (ITC) as the commissioner failed to determine GST Liability of alleged GST evaders which amounted to lack of ‘reasons to believe’.
Orissa High Court
The Orissa High Court has directed Vedanta to reply to the show cause notice in respect of a sum of ₹8,02,84,232 by which the department claims it to be a wrongly availed input tax credit (ITC).
Jharkhand High Court
The Jharkhand High Court has granted anticipatory bail to advocate/tax practitioner who failed to verify the documents for GST registration of a firm which is responsible for wrongfully claiming Input Tax Credit (ITC) and held that advocate is not liable for verifying client’s fake documents in Firm Registration.
Kerala High Court
The Kerala High Court has held that the electronic credit ledger is a wallet, availment of Input Tax Credit (ITC) benefit does not amount to be wrongful.
Lower Court
The Gurugram Court has granted bail in Rs. 7.13 crore Input Tax Credit (ITC) fraud case.
The Additional Chief Judicial Magistrate, Mumbai has granted bail first day bail within few hours of arrest to accused involved in wrongful Input Tax Credit (ITC) availment citing it to be in an illegal and hasty manner.
