Summary: Braham Prakash, owner of M/S Shri Shyam Trading Co., challenged a CGST order accusing him of fake Input Tax Credit (ITC) claims. The Delhi High Court, led by Justices Prathiba M. Singh and Shail Jain, allowed him to appeal despite missing deadlines, citing procedural mistakes.
The case started with an order on January 21, 2025, against Braham Prakash for allegedly claiming fake ITC. Braham Prakash argued that he was not given a chance to explain himself in person and that the warning notice was delayed, being uploaded after the allowed time on August 27, 2024.
"The warning notice was uploaded on 27th August, 2024, beyond the allowed time which ended on 5th August, 2024."
The investigation by DGGI Rohtak revealed a network of 18 fake companies linked to Praveen Jain in Sonepat, who allegedly used them for ITC claims. Braham Prakash's company was one of 374 businesses involved.
"The DGGI, Rohtak discovered a network of 18 fake companies."
Braham Prakash's lawyer emphasized the lack of a personal hearing, arguing it was unfair. The court, however, noted the complexity of fake ITC cases, emphasizing the need for detailed analysis beyond their current power.
"The Court is not inclined to use its power in cases involving fake ITC claims."
Despite the missed deadline for appeal, the court gave Braham Prakash the chance to appeal by January 15, 2026, considering the procedural issues mentioned.
"If the appeal is filed by 15th January, 2026, it shall not be dismissed because of the missed deadline."
The court decided to let Braham Prakash file an appeal despite missing the deadline, due to the mistakes in the process, like the delayed warning notice and lack of a personal hearing. This decision shows the court's effort to make sure the process is fair while following the law.
