DVAT Registration Credentials Misused by Third Person for availment ITC under GST Act: Delhi HC Stays SCN [Read Order]

Top Stories DVAT Registration Credentials Misused by Third Person for availment ITC under GST Act: Delhi HC Stays SCN [Read Order] The petitioner, registered under DVAT Act pre-CGST, never applied for GST migration but allegedly had DVAT credentials misused for CGST ITC. By Navasree A.M – On February 16, 2024 8:05 pm – 2 mins read The Delhi High Court stayed the Show Cause Notice ( SCN ), involving allegations of wrongful use of Delhi Value Added Tax ( DVAT ) credentials for availing Input Tax Credit ( ITC ) under the Central Goods and Services Act ( CGST ), 2017 by third person.

The petitioner, Aakash Gupta has challenged a Show Cause Notice dated 27.02.2023, asserting that they never applied for migration to the GST Scheme but were accused of availing ITC. According Adv. Kashish Guptathe, petitioner’s counsel submitted that the petitioner was registered under the DVAT Act before the implementation of the CGST Act.

They had sought cancellation of their DVAT Act registration and did not apply for migration to the GST Scheme. However, it has come to light that someone allegedly misused the petitioner’s DVAT credentials to avail ITC under the CGST Act. The counsel further stated that the respondents have identified individuals suspected of wrongfully using the petitioner’s DVAT registration for migrating to the GST Scheme.

The petitioner maintains that their dealer profile does not reflect any application for migration, and their DVAT registration was officially cancelled on 01.04.2017. Respondent No. 3’s counsel requested additional time to gather instructions and relevant documentation.

It is expected that Respondent No. 3 will present documents and materials regarding the alleged migration of the petitioner from DVAT to the GST Scheme. Considering the request submitted by the Respondent No. 3’s counsel,  the bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja adjourned further proceedings on the Show Cause Notice until 21.02.2024.

During this period, the proceedings on the Notice will remain stayed, allowing both parties to gather and present necessary evidence. To Read the full text of the Order CLICK HERE

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