Factual Disputes Involving GST ITC Availment: Delhi HC Refuses to Entertain Writ, Grants Liberty to Appeal [Read Order]

In a recent ruling, the Delhi High Court refused to entertain a writ petition filed by Rishi Enterprises and held that the matter involved factual disputes which must be examined before the appellate authority rather than in writ jurisdiction.

Rishi Enterprises, through its proprietor Rajeev Kumar Goel, had challenged an order dated 11 February 2025 passed under Section 74 of the Central Goods and Services Tax Act, 2017. The proceedings arose from an investigation into alleged wrongful availment of Input Tax Credit based on invoices issued by a non-existent firm.

The petitioner’s counsel argued that the show cause notice was time-barred, that a consolidated notice covering multiple financial years was not valid, and that no opportunity of personal hearing had been provided.

The department’s counsel argued that the order had been signed on 31 January 2025, communicated by email on 4 February 2025, and was thus within limitation. They further argued that a consolidated show cause notice was permissible in cases involving fraudulent ITC, and that personal hearings had been fixed but the petitioner failed to appear.

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The Division Bench of Justice Prathiba M.Singh and Justice Shail Jain observed that the records showed hearings were scheduled on three separate dates and that the petitioner did not attend. The court explained that consolidated notices are valid in cases of fraudulent ITC since such transactions often span multiple years.

The court pointed out that the order was issued within the statutory time frame and that communication through email constituted valid service under Section 169 of the Act.

The court held that disputed facts were central to the case, and such issues could not be adjudicated in writ jurisdiction. On this basis, the writ petition was dismissed.

The court permitted the petitioner to file an appeal under Section 107 of the Act before the appellate authority by 30 September 2025 along with the requisite pre-deposit, and clarified that if filed within this period, the appeal would not be dismissed on limitation grounds but decided on its merits. Pending applications were also disposed of in the same terms.

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