Delhi High Court - Orders
Aakash Gupta vs Commissioner Of Delhi Goods And ... on 19 August, 2025
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~36
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 11954/2025 & CM APPL. 48776/2025
AAKASH GUPTA .....Petitioner
Through: Mr. Sunil Dalal, Sr. Adv. with Mr.
Puneet Agrawal, Ms. Shipra Bali, Mr.
Bharat Khurana and Mr. Sarthak
Malhotra, Mr. Kashish Gupta, Ms.
Anchal Gupta, Mr. Yuvraj Singh, Mr.
Ketan Jain, Ms. Mansi Khurana, Mr.
Chetan Kumar Shukla, Ms. Sakshi Bisht
& Mr. Mreedu Singh, Advs.
versus
COMMISSIONER OF DELHI GOODS AND SERVICES TAX &
ORS. .....Respondents
Through: Ms. Vaishali Gupta, Panel Counsel
(Civil),
GNCTD/Respondent/Respondent and
R-1 and 2
Mr. Subodh Kumar Kaushik, SPC with
Ms. Chaya Sharma, Adv. for R-7 to 10.
CORAM:
JUSTICE PRATHIBA M. SINGH
JUSTICE SHAIL JAIN
ORDER
% 19.08.2025
1. This hearing has been done through hybrid mode.
2. The present petition has been filed under Article 226 of the Constitution of India challenging the impugned Order-in-Original dated 3rd February, 2025 by which a demand to the tune of Rs.78,93,29,211/- has been raised against the Petitioner's firm i.e. M/s Amit Aakash Enterprises which is a sole proprietary concern of the Petitioner - Mr. Aakash Gupta.
W.P.(C) 11954/2025 Page 1 of 7This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/08/2025 at 22:56:42
3. The case of the Petitioner is that it was originally registered with the Department of Trade and Taxes under the Value Added Tax (hereinafter, 'VAT') regime since 2015. However, in 2017, it had discontinued its business and an online application was filed in Form DVAT-9, seeking cancellation of the registration from 1st April, 2017. The bank account of the proprietary concern was also closed on 5th August, 2017.
4. However, sometime in 2020, as per the Petitioner, it was visited by some officers from the Directorate General of GST Intelligence, Delhi Zonal Unit, (hereinafter, 'DGGI') at its erstwhile business premises, who raised allegations that the Petitioner's VAT registration had been migrated to the GST registration under Section 139 of the Central Goods and Service Tax Act, 2017 (hereinafter, 'CGST Act') and a substantial sum of Input Tax Credit had been fraudulently availed of after the alleged migration of the registration.
5. The investigation in this regard was commenced in 2020 by the DGGI and immediately thereafter, the Petitioner had filed a police complaint with the SHO, Lahori Gate, alleging that all his identities i.e., Aadhaar Card, PAN Card, email id and mobile number were misused. Further, the Petitioner also sought registration of an FIR with respect to the same. However, it is the case of the Petitioner that no FIR has been registered till date.
6. The Petitioner is thereafter stated to have acquired knowledge that some other mobile number and email address, being '8769326591' and [email protected], respectively, has been associated with the said GST registration which was fraudulently created. No investigation was undertaken in respect of the said mobile number and email address.
7. A Show Cause Notice was, issued to the Petitioner on 27th February, 2023 along with an addendum as to why a penalty to the tune of Rs.78.93 crores W.P.(C) 11954/2025 Page 2 of 7 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/08/2025 at 22:56:42 ought not to be imposed on the Petitioner.
8. The Show Cause Notice has been adjudicated upon and the impugned order has been passed, confirming the demand upon the Petitioner on 3rd February, 2025.
9. The submission of Mr. Dalal, ld. Senior Counsel appearing for the Petitioner is that even in an earlier round, the Petitioner had filed a criminal writ petition seeking appropriate action in the said regard, which was disposed of by this Court vide order dated 1st February, 2023 being W.P.(CRL.) 2770/2022 titled Aakash Gupta v. Union of India & Ors. where it was directed as under:
"W.P.(CRL) 2770/2022
1. This petition has been filed impugning the proceedings by respondent No. 4-5 (Principle Additional Director General, GST Intelligence and Senior Intelligence Officer, GST Intelligence) against the petitioner and desist from taking any coercive steps.
2. This matter relates to proceedings which have been initiated for alleged evasion of tax under the Goods and Service Tax.
3. Learned counsel for the petitioner submits that they have fully cooperated in the investigation, which fact is confirmed by the counsel appearing for respondent Nos. 4 & 5.
4. Further, counsel for the respondent Nos. 4&5 states that in fact the investigation is complete and show cause notice under Sections 73-74 of CGST Act is being issued to the petitioner and the petitioner would therefore have its remedy in response to the said show cause notice. He further submits that in this view, no coercive measure against the petitioner is necessitated at this stage.
5. In view of these submissions, this writ petition is disposed of, with liberty to the petitioner to take their W.P.(C) 11954/2025 Page 3 of 7 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/08/2025 at 22:56:42 remedies in accordance with law.
6. It is made clear that disposal of this petition will be without prejudice to rights and contentions which have been asserted by the petitioner in this matter.
7. Order be uploaded on the website of this Court."
10. Previously as well, the Petitioner had filed a writ petition being W.P.(C) 12694/2023 titled Aakash Gupta v. Commissioner of Delhi Goods and Services Tax & Ors. wherein, inter alia, the material seized from the Petitioner was sought to be placed on record. This writ, however, has also been disposed of on 10th December, 2024 wherein the Court had directed as under:
"1. This writ petition has been preferred impugning the validity of a Show Cause Notice dated 27 February 2023. In addition, the petitioner also seeks the issuance of an appropriate writ commanding the respondents to return his seized electronic devices.
2. From the disclosures which are made in the writ petition, we find that the petitioner had set up a sole proprietorship firm under the name and style of M/s Amit Aakash Enterprises on 08 June 2015. He alleges that this proprietorship firm was closed on 01 April 2017 and whereafter he also surrendered the Value Added Tax registration by filing an appropriate application on 14 April 2017.
3. The SCN, however, lays allegations of passing on fraudulent and bogus Input Tax Credit without any corresponding supply of goods. The aforesaid SCN is based on an investigation which the respondents appear to have undertaken covering the period from July 2017 to April 2018.
4. It is alleged by the writ petitioner that his credentials have been misused on the Goods and Services Tax portal since he had never even applied for GST registration and that in relation thereto, he has made W.P.(C) 11954/2025 Page 4 of 7 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/08/2025 at 22:56:42 various complaints to the respondents as well as the police authorities. It is on the aforesaid basis that he alleges that the SCN pertaining to a period post the closure of the firm was liable to be quashed.
5. As is manifest from the disclosures which are made in paragraphs 25, 26, 27, 29 and 30 of the writ petition, we find that these allegations have been addressed to the competent authorities of the respondents and are being duly inquired into. Similar details are set forth in paragraph 40 of the writ petition.
6. However, and in our considered opinion, the question of whether the credentials of the petitioner were misused and is a case of identity theft clearly gives rise to disputed questions of fact and would be liable to be duly inquired into by the competent authorities and which investigation cannot be undertaken by this Court.
7. In view of the aforesaid, we find ourselves unable to evaluate the challenge which stands raised in the writ petition. Accordingly, and while we dispose of the same, we only provide that it would be open for the petitioner to furnish all material in support of his allegation for the consideration of the respondents who may duly examine the same while finalizing the SCN proceedings
8. All rights and contentions of respective parties on merits are otherwise kept open."
11. The Petitioner, thereafter, participated in the Show Cause Notice proceedings and filed a detailed reply with respect to same. However, as per ld. Senior Counsel, the reply of the Petitioner has not been considered.
12. Heard. The matter requires consideration as the question arises as to how the migration of registration from the VAT regime to the GST regime took place. The GST Department shall have to explain as to what documents were W.P.(C) 11954/2025 Page 5 of 7 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/08/2025 at 22:56:42 filed for enabling the said migration.
13. In addition, the police would also have to file a status report giving the details of the investigation and as to whether any FIR has still been registered or not. Though the impugned order is an appealable order under Section 107 of the CGST Act, in these unique facts, notice is being issued to the Respondents in the present writ petition.
14. Ms. Vaishali Gupta, ld. Panel Counsel accepts notice on behalf of Respondent Nos.1 and 2.
15. Mr. Tyagi, ld. Senior Standing Counsel accepts notice on behalf of Respondent No. 3 to 6.
16. Mr. Subodh Kumar Kaushik, ld. SPC accepts notice on behalf of Respondent Nos. 7 to 10.
17. Let all three ld. Counsels file their counter affidavit in this matter within a period of four weeks. The concerned police authorities shall also file a status report.
18. In the meantime, no coercive steps shall be taken against the Petitioner pursuant to the impugned order.
19. The GST Department shall clarify as to whether any OTP was sent on the Petitioner's mobile number being 99998 86903 for migration from VAT regime to GST regime. If there is any evidence of the same, the same shall be placed on record.
20. If any GST REG-26 has also been filed in this matter by the Petitioner or any other person, the same shall also be placed on record.
21. If the Petitioner is non-suited in the present petition at a later stage, at that stage, this Court would consider extending the time period for filing an appeal.
W.P.(C) 11954/2025 Page 6 of 7This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/08/2025 at 22:56:42
22. List before the Joint Registrar on 22nd September, 2025.
23. List before the Court on 12th November, 2025.
PRATHIBA M. SINGH, J.
SHAIL JAIN, J.
AUGUST 19, 2025 Rahul/ss W.P.(C) 11954/2025 Page 7 of 7 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/08/2025 at 22:56:42