{"id":5989,"date":"2025-09-18T17:19:19","date_gmt":"2025-09-18T11:49:19","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=5989"},"modified":"2025-09-18T17:19:19","modified_gmt":"2025-09-18T11:49:19","slug":"hc-rules-fraudulent-itc-via-otp-misuse-needs-police-probe","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/hc-rules-fraudulent-itc-via-otp-misuse-needs-police-probe","title":{"rendered":"HC Rules Fraudulent ITC via OTP Misuse Needs Police Probe"},"content":{"rendered":"
Case Details: Radhey<\/span> Traders\u00a0 vs<\/span>.<\/span> Assistant Commissioner, CGST Delhi East <\/span>Commissionerate<\/span> (2025) 33 <\/span>Centax<\/span> 405 (Del.)<\/span><\/span>\u00a0<\/span><\/a><\/strong><\/pre>\n
Judiciary and Counsel Details<\/em><\/h2>\n
    \n
  • Pratibha M. Singh<\/strong> & Shail Jain<\/strong>, JJ.<\/li>\n
  • S\/Shri Ankit Majumder<\/strong> & Puneet Kapoor<\/strong>, Advs., for the Petitioner<\/li>\n
  • S\/Shri Arun Khatri<\/strong>, SSC, Ms Anoushka Bhalla<\/strong>, Sahil Khurana<\/strong>, Akshay<\/strong>, Sainyam Bhardwaj<\/strong>, Ms Himanshi Singh<\/strong>, Ms Monalisha Pradhan<\/strong>, Advs. and Ms Arunima Dwivedi<\/strong>, CGSC, for the Respondent<\/li>\n<\/ul>\n
    Facts of the Case<\/em><\/h2>\n
    The petitioner challenged orders confirming denial of ITC and <\/span>additional<\/span> tax liability arising from discrepancies betwee<\/span>n GSTR-1 and GST-3B. It was contended that the petitioner\u2019s GST registration number had been misused for effecting sales and that the petitioner had shared OTPs from his mobile number with a third party only for the limited purpose of suspension of registr<\/span>ation. <\/span>On the basis of<\/span> those OTPs, however, several firms were created through which fraudulent ITC was availed. The petitioner submitted that he could not be held liable for such fraudulent <\/span>availment<\/span> and sought relief through a writ petition. The matter w<\/span>as accordingly placed before the High Court.<\/span><\/span>\u00a0<\/span><\/p>\n
    High Court Held<\/em><\/h2>\n
    The High Court held that, since the OTPs were voluntarily shared by the petitioner with a third party, leading to creation of multiple firms and fraudulent <\/span>availment<\/span> of ITC, the petitioner could not claim<\/span> to be completely innocent while preferring a writ petition against the impugned orders. It was <\/span>observed<\/span> that the writ <\/span>jurisdiction<\/span> could not be invoked to conduct a factual inquiry into responsibility for fraudulent transactions under Section 16 read with<\/span> Section 61 of the CGST\/Delhi GST. The Court clarified that the giving of OTPs and their <\/span>subsequent<\/span> misuse is a matter requiring detailed investigation by police authorities, which falls outside the writ <\/span>jurisdiction<\/span>. <\/span>Accordingly<\/span>, the High Court declined t<\/span>o interfere, emphasizing that such cases of fraudulent ITC must be subjected to proper investigation by competent law enforcement authorities.<\/span><\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
    Case Details: Radhey Traders\u00a0 vs. Assistant Commissioner, CGST Delhi East Commissionerate (2025)…<\/p>\n","protected":false},"author":16,"featured_media":5993,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-5989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"\nHC Rules Fraudulent ITC via OTP Misuse Needs Police Probe<\/title>\n<meta name=\"description\" content=\"High Court held that fraudulent ITC claims made through OTP misuse require detailed police investigation and cannot be adjudicated in a writ petition.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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