HC grants interim protection when login credentials and GST number misused to avail of ITC

Last updated: 20 August 2024

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Quick Summary

The Delhi High Court has provided interim protection to a taxpayer who alleged that their GST registration and login credentials were misused by a third party to claim Input Tax Credit (ITC). The court has ordered the Revenue department and police to file affidavits detailing actions taken regarding the misuse, with the case listed for further hearing.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of Nirdosh Kumar Sadh v. Commissioner, Delhi Goods and Services Tax [W.P. No. 6808 of 2024 dated May 21, 2024], granted interim protection from possible coercive action on the part of the Department in the matter wherein it has been alleged that the third person has misused the GST number and login credentials without the knowledge of the Assessee.

Citation :
W.P. No. 6808 of 2024 dated May 21, 2024

The Hon'ble Delhi High Court in the case of Nirdosh Kumar Sadh v. Commissioner, Delhi Goods and Services Tax [W.P. No. 6808 of 2024 dated May 21, 2024], granted interim protection from possible coercive action on the part of the Department in the matter wherein it has been alleged that the third person has misused the GST number and login credentials without the knowledge of the Assessee.

Facts

Nirdosh Kumar Sadh ("the Petitioner"), filed a writ petition against order dated April 09, 2024 ("Impugned Order") passed by the Revenue department ("the Respondent"). The Petitioner contended that he had applied for registration and within a few weeks shut down his business as he was not in a position to carry out any business transaction and file the return. Further, it came to the knowledge of the Petitioner that the GST registration and login credentials had been misused and a high amount of ITC was availed in the name of the Petitioner. After that, the Petitioner informed the proper officer and police to take appropriate action. Also, the email and mobile no. submitted at the time of registration have been changed without the knowledge and information of the Petitioner.

Held

The Hon'ble Delhi High Court in W.P. No. 6808 of 2024 vide order dated May 21, 2024, granted interim protection from possible coercive action on the part of the Respondent. The Hon'ble High Court further directed the Police authorities and the Respondent to file the affidavit informing the Court regarding action taken in the aforesaid matter and listed the matter for further hearing.

OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED

FAQ :

The case concerns allegations that a taxpayer's GST number and login credentials were misused by a third party to avail Input Tax Credit (ITC) without the taxpayer's knowledge.

The Delhi High Court has granted interim protection to the petitioner, shielding them from potential coercive action by the Revenue department.

The court has directed the police authorities and the Revenue department to file affidavits detailing the actions taken in response to the alleged misuse of GST credentials.

The petitioner informed the proper officer and the police about the misuse and took steps to address the situation, noting that their contact details were changed without their consent.

Attached File : 671907_5716_nirdosh_kumar_sadh_v_commissioner_delhi_goods_and_services_tax.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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