MADHAV COPPER LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) These two Special Civil Applications are interactive. Therefore, they were heard together to be treated for disposal by this common order.

(2.) The petitioner company engaged in the business of copper and copper scrap faced certain serious allegations in respect of wrongful availment of Input Tax Credit in respect of the financial year 2017-2018 to financial year 2020-2021 comprising of the period beginning from April 2021 to July, 2021, thus extending to financial year 2021-2022.

(3.) Upon a search carried out against the petitioner company, the Goods and Service Tax Authorities allegedly found that the petitioner was engaged in the purchase of goods from 39 fictitious business firms and fake purchases for all those financial years to the tune of Rs.770.64 crores were wrongfully made to avail the Input Tax Credit of Rs.138.71 crores. The authorities termed it as a financial scam committed by the petitioner-company to decide to proceed against the petitioner in accordance with law.