GST Registration obtained by misuse of PAN and Aadhar: Delhi HC directs Department to treat Petition as Representation [Read Order]

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The Delhi High Court has recently directed the Goods and Services Tax ( GST ) Department to treat a petition for cancellation of GST registration obtained by misuse of the PAN and Aadhar  of the petitioner as a representation to allow the petitioner to raise his claims.

The petitioner sought to pass an order directing the respondent no.1, GST Commissioner to Act on the representation made by the petitioner and further take steps for the suspension of fake GST account which has fraudulently been opened in the name of the petitioner, with immediate effect.

He further prayed to pass an order directing the respondents to trace out the fraudsters/gang who had created fake GST Account without the knowledge of petitioner and further to ensure that other such fake accounts opened by the said gang is acted upon and to pass an order directing the respondents to make appropriate provisions to ensure that, where account has fraudulently been opened without the knowledge or consent of the person, then the said person shall not be made liable under section 29(5) of the Goods and Services Tax Act.

The petitioner submitted that he is a street vendor and had recently become aware that a GST registration has been obtained in his name without his knowledge or consent. The petitioner claims that he vends food items from a stall that he puts up at the boundary wall.

He further claimed that he was desirous of obtaining a GST registration in respect of his business carried out from the said stall and, in the process of applying for the same, found that a firm by the name and style of M/s Sheel Industries has already been registered by some unknown persons by misusing his Identity Card, that is, Aadhar Card and PAN Card.

The petitioner, through Kamlesh Kumar Mishra, Akhil Rexwal, Kailash, Aditiya, Bibhuti Bhushan

Mishra, Renu & Anjani Mishra also claimed that the said unknown persons have been filing returns without his knowledge. In the aforesaid context, the petitioner had also made a representation to the Delhi Police, which is pending action.

Harpreet Singh,counsel who appeared for respondent nos.1 and 5 (namely, The GST Commissioner and The Directorate of Revenue Intelligence), submitted that respondent nos.1 and 5 have no role to play in the present petition as the registration has been obtained from the State GST authorities.

Rajeev Aggarwal, counsel appearing for respondent nos.2, 3 & 4 (Delhi Police) submitted that a representation has been received from the petitioner and the same would be examined by the concerned authorities. He further stated that although the State GST Commissioner has not been made a party, he would accept notice on behalf of the State GST Commissioner as well.

He further submitted that if the averments made in the petition are accepted at their face value, it would indicate that a fraud has been committed; however, the averments cannot be accepted at their face value and require to be properly examined and the State GST authorities would do the same.

The Delhi High Court Division Bench of Justice Vibhu Bakhru and Justice Amit Mahajan thereby directed that the present petition be treated by the Commissioner GST/ State GST Authorities as a representation and the grievance of the petitioner be examined as per law.

It was further clarified that the petitioner shall disclose the identity of his friend to whom he claims to have handed over his identity documents, to the Police Authorities as well as to the State GST authorities.

The petitioner was further directed to fully cooperate with the concerned authorities and provide them all the information as required.

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Counsel for Appellant:   Mr. Kamlesh Kumar Mishra, Mr. Akhil Rexwal and Mr. Kailash

Counsel for Respondent:   Mr. Harpreet Singh and Mr. Jatin Kumar Gaur


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