Trader Seeks Protection from Coercive Action in Fake GST ITC Probe: Chhattisgarh HC Directs to appear Before DGGI, Bars Coercive Steps [Read Order]
The Court made it clear that if the petitioners cooperate with the inquiry, the GST authorities shall not take any coercive steps against them in respect of the transactions.
Fake GST - ITC - Chhattisgarh HC - DGGI - taxscan
Fake GST - ITC - Chhattisgarh HC - DGGI - taxscan
The Chhattisgarh High Court has granted interim protection to a trader accused of availing fake Input Tax Credit ( ITC ) under the Goods and Services Tax ( GST ), directing the Directorate General of GST Intelligence ( DGGI ), not to take coercive action if the petitioner cooperates with the investigation.
The petitioner, Harsh Wadhwani, proprietor of Vijay Laxmi Trade Company, and his father, Santosh Wadhwani, approached the High Court seeking protection from alleged harassment in a probe relating to ITC claims based on transactions with M/s Taj Enterprises and M/s Agastya Enterprises.
The petitioners contended that they had duly filed their GSTR-3B returns for FY 2024-25 and claimed legitimate ITC. However, the DGGI initiated proceedings alleging that the credit was claimed on the basis of fake invoices.
The Counsel for the petitioners Mr. Manoj Paranjpe, Sr. Advocate assisted by Mr. Siddharth Dubey, Advocate submitted that repeated summons were issued under Section 70 of the CGST Act, yet the summons failed to specify the nature of oral evidence required.
The petitioners expressed willingness to fully cooperate and furnish any clarifications sought by the authorities but sought protection against coercive measures such as arrest during the inquiry.
Opposing the plea, counsel for the DGGI stated that the investigation pertains to evasion of tax through fake ITC and that further inquiry and oral evidence were necessary. However, it was assured that no coercive action would be needed if the petitioners cooperated with the investigation process.
After hearing both sides, Justice Naresh Kumar Chandravanshi directed the petitioners to appear before the investigating officers of the DGGI, Raipur, on October 28, 2025, and on subsequent dates as required.
The Court made it clear that if the petitioners cooperate with the inquiry, the GST authorities shall not take any coercive steps against them in respect of the transactions with M/s Taj Enterprises and M/s Agastya Enterprises.
The Court further directed the authorities to dispose of the petitioners’ objections to the investigation by passing a speaking order in accordance with law, as expeditiously as possible. Accordingly, the writ petition was disposed of.
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