GST Case Summary: Forged SCNs and Fabricated Petitions in Delhi High Court

Case Title:

M/s S R Enterprises & Ors. v. Principal Commissioner of GST, East Delhi

Court: Delhi High Court
Petition Nos.: W.P.(C) 685/2025, W.P.(C) 1314/2025, W.P.(C) 2461/2025 & W.P.(C) 2867/2025
Date of Judgement: 29th May 2025
Category of Dispute: GST Registration Cancellation / Fraudulent Litigation
Relevant Sections: Section 29 of CGST Act, 2017; Section 215 & 379 BNSS, 2023; Sections 227, 228, 229, 233, 236, 237, 246, 336(1), 340(2) of Bharatiya Nyaya Sanhita, 2023

Facts of the Case

1. Four writ petitions challenged cancellation of GST registrations based on Show Cause Notices (SCNs) dated between September 2024 and February 2025 (Para 2-3).

2. Earlier, the Court had quashed cancellation orders relying on precedent cases (Riddhi Siddhi Enterprises, Ramesh Chander, Delhi Polymers) assuming SCNs were genuine (Para 5-6).

3. Later, it was revealed that the SCNs and Aadhaar cards filed with petitions were forged and fabricated (Para 20, 26).

4. Petitioners were found untraceable; one deponent admitted being duped into handing over Aadhaar/PAN to a scrap dealer under pretext of employment (Para 18-19).

5. Investigation revealed circulation of over ₹50 crores in a petitioner firm’s bank account (Para 21, 29).

Questions in Consideration

1. Whether the writ petitions were filed by genuine petitioners with valid authority? (Para 26)

2. Whether forged SCNs and fabricated Aadhaar cards vitiate the petitions? (Para 20, 26-27)

3. Whether fraud in GST litigation requires deeper criminal investigation beyond cancellation issues? (Para 30, 33-35)

Observations of the Court

1. Aadhaar cards and SCNs relied upon were forged and fabricated (Para 20, 26-27).

2. Petitioners were either fictitious or impersonated; some were unemployed/domestic workers with no connection to the GST firms (Para 28-29).

3. The fraud appears to be a planned conspiracy for GST evasion and wrongful ITC circulation (Para 30).

4. Counsel for petitioners (Mr. Pranay Jain) could not clarify who provided him documents; Court noted lack of verification (Para 31-32).

5. Ordered that the matter required registration of FIR and probe by DGGI and Delhi Police (Para 33-35).

6. Suggested systemic reform: Oath Commissioners/Notaries should maintain photographic record of deponents to prevent impersonation (Para 37).

Judgement of the Court

1. All previous orders recalling cancellation of GST registration were withdrawn (Para 38).

2. Four writ petitions dismissed as based on fabricated documents (Para 43).

3. Directed DGGI to file complaint with Crime Branch, FIR to be registered, and prosecution to proceed under BNSS & BNS provisions for forgery and fraud (Para 34-40).

4. Registrar General to file complaint against petitioners for offences under BNSS/BNS (Para 40).

5. Issued directions for stricter verification of GST litigation documents and consideration of photographic verification in affidavits (Para 37, 39).

Between Fine Lines (Simplified Outcome in 5 Lines)

• The Court discovered that multiple GST writ petitions were based on forged SCNs and fake Aadhaar cards.

• Petitioners were fictitious; some were unemployed or domestic workers unaware of the petitions.

• Huge financial transactions in petitioner firms pointed to a planned GST fraud conspiracy.

• Court dismissed all petitions, recalled earlier relief orders, and directed criminal action.

• Suggested systemic reforms in affidavit attestation to prevent misuse of judicial process.

Summary of Referred Cases

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