DEEM DISTRIBUTORS PRIVATE LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The Background facts The petitioner is a partnership firm and is registered under the Telangana GST Act, 2017, CGST Act, 2017 and IGST Act, 2017 and is involved in the business of dealing in goods and services relating to Ferrous waste and scrap, re-melting scrap ingots of iron or steel, flat rolled products of iron or non-alloy steel of a width of 600 mm or hot rolled, not clad, plated or coated etc.

(2.) In the instant case, the 4th respondent issued a letter dt.25.04.2019 to the petitioner saying that the petitioner had availed input tax credit on the basis of invoices issued by certain suppliers/firms. It is stated in the said letter that the investigations conducted by the departmental officials reveal that the said suppliers/firms are fictitious and are issuing fake invoices with an intent to pass on input tax credit, and it appears that the said credit was availed by the petitioner in a fraudulent manner without receiving any material, and the petitioner was requested to reverse the input tax credit of Rs.1,52,35,820/- availed on such invoices immediately.

(3.) The 3rd respondent sent an intimation of tax ascertained as being payable on 22.01.2021 saying that petitioner is liable to pay Rs.1,17,35,822/- for the period February, 2018 to March, 2018 and he was being advised to pay it, failing which a show cause would be issued under sub-Section (1) of Section 74 of the Act.