The Delhi High Court has dismissed a writ petition filed by Ganpati Polymers, which had challenged a Central Goods and Service Tax (CGST) order alleging fraudulent availment of Input Tax Credit (ITC) worth ₹50.33 crore.
The bench of Justice Prathiba M. Singh and Justice Renu Bhatnagar imposed a cost of ₹50,000 on the petitioner for failing to participate in the adjudication process despite multiple opportunities.
The case arose from a large-scale fake billing racket allegedly run by two individuals, Rajesh Jindal and Adesh Jain, who were accused of creating dummy firms and issuing invoices without actual supply of goods. Investigations revealed that multiple entities, including Ganpati Polymers, benefitted from inadmissible ITC through these bogus firms. Authorities noted that even transport documents showed vehicles such as scooters and three-wheelers being used to claim transportation of bulk goods — a clear indicator of falsification.
The CGST Department had conducted searches in July 2018, seizing documents and digital devices, and recording statements of the accused persons. Based on the findings, a show cause notice was issued on August 5, 2024, followed by an Order-in-Original dated February 1, 2025, which confirmed the ITC demand.
The Department provided multiple opportunities for personal hearings in November and December 2024, but Ganpati Polymers, listed as Noticee No. 15, neither attended nor filed a reply. Its counsel later argued that the company’s GST registration had been suspended since February 2022, and that the proprietor, Ankur Jain, was not a regular user of the GST portal, which led to non-compliance.
Rejecting this defense, the Court observed that the petitioner was fully aware of the ongoing investigation and could not adopt a “callous” approach. It held that the impugned order was passed within limitation, despite the DRC-07 being uploaded later, and declined to interfere.
While dismissing the petition, the Court directed Ganpati Polymers to deposit ₹50,000 with the Delhi High Court Bar Association within two weeks. However, the judges granted the company liberty to pursue an appeal under Section 107 of the CGST Act, provided it files the same by August 31, 2025, along with the requisite pre-deposit.
Case Details
Case Title: Ganpati Polymers Versus Commissioner Of Central Goods And Service Tax And Another
Case No.: W.P.(C) 11906/2025
Date: 8th August, 2025
Counsel For Petitioner: Rakesh Kumar and Mr. Parveen Kumar Gambhir
Counsel For Respondent: Sumit K. Batra
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