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Delhi High Court Comes Down Hard on Firms Misusing Writ Jurisdiction to Challenge GST Penalties In a strong and clear stance, the Delhi High Court recently criticized the growing trend of businesses misusing the court’s writ jurisdiction to escape the consequences of fraudulent claims under the Goods and Services Tax (GST) regime. The case in question revolved around the fraudulent availment of Input Tax Credit (ITC), a key feature of the GST system designed to prevent tax cascading and support genuine businesses. A Division Bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta took serious note of what they described as a “pattern” where entities—either guilty of availing fraudulent ITC or enabling such fraud—were approaching the High Court under Article 226 of the Constitution to challenge penalty orders under Section 74 of the CGST Act, often on narrow technical grounds. The Court’s Concern: Undermining the GST Framework Expressing concern over...