Facts of the Case

The petitioner, Anil Kumar, a street vendor operating near Old Delhi Railway Station, discovered that a GST registration had been fraudulently obtained in his name without his knowledge or consent. The registration was created under the name M/s Sheel Industries using his Aadhaar and PAN details.

The petitioner became aware of this fraudulent registration while attempting to apply for GST registration for his own business. He further apprehended that GST liabilities might be imposed on him due to fraudulent activities carried out by unknown persons who had been filing GST returns using the fake registration.

He had also filed a representation before the authorities and a complaint with the police, which remained pending.

Issues Involved

  1. Whether a person can be held liable under GST law for a registration fraudulently obtained in his name without consent.
  2. Whether authorities are obligated to act upon complaints regarding fake GST registrations.
  3. Whether directions can be issued to investigate fraud and prevent misuse of identity documents.
  4. Scope of judicial intervention in cases involving disputed facts and alleged fraud under GST regime.

Petitioner’s Arguments

  • The GST registration was fraudulently created using his identity documents without his consent.
  • He feared wrongful imposition of tax liability under GST law.
  • Authorities failed to act on his representation seeking cancellation of the fake GST registration.
  • Requested directions for:
    • Immediate suspension of the fake GST account
    • Identification of fraudsters
    • Protection from liability under Section 29(5) of the CGST Act
    • Compensation for mental agony caused 

Respondent’s Arguments

  • The Central GST authorities contended that the registration was issued by State GST authorities, and therefore they had no direct role.
  • Delhi Police submitted that the petitioner’s complaint was under examination.
  • It was argued that allegations of fraud require proper verification and cannot be accepted at face value.
  • It was also pointed out that the petitioner himself had handed over identity documents to a friend, raising questions requiring investigation.

Court’s Findings / Order

  • The Court directed that the writ petition be treated as a representation to the State GST authorities.
  • Authorities were instructed to examine the grievance in accordance with law.
  • The petitioner was directed to:
    • Disclose the identity of the person to whom he had given his documents
    • Cooperate fully with GST and police authorities
  • The Court clarified that:
    • It had not expressed any opinion on merits
    • The petitioner is free to avail other legal remedies if grievance remains unresolved
  • The petition was disposed of without adjudicating factual disputes.

Important Clarification by Court

  • The High Court refrained from making findings on fraud allegations due to disputed facts.
  • Emphasized administrative remedy and investigation as the appropriate course.
  • Reinforced that writ jurisdiction is limited where factual determination is required.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/VIB14022023CW18972023_154921.pdf

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