Writ Petition Not Maintainable Where Allegations of Fake Firm and Bogus ITC Require Factual Examination — Delhi HC Relegates Petitioner to Appellate Remedy Under Section 107

The Delhi High Court has declined to entertain a writ petition challenging the rejection of an application for cancellation of GST registration, holding that the factual allegations raised by the Department — including registration on the basis of fake documents, non-existence of the firm at its registered address, availing and passing ITC from non-existent firms, and identification of the firm as a fake firm in the fake firm drive — require examination of material and appreciation of evidence that can appropriately be undertaken by the Appellate Authority under Section 107 of the CGST Act. The ruling, by Justice Anil Kshetarpal and Justice Rajneesh Kumar Gupta in W.P.(C) 13175/2026 (Adhvik Polychem, decided 09.09.2026), relegates the petitioner to the statutory appellate remedy.

The petitioner’s GST registration had been cancelled on three earlier occasions through SCNs, all of which were subsequently dropped. A fresh SCN dated 09.06.2026 was issued proposing cancellation under Rule 21(b), raising multiple grounds including registration on unverifiable documents, the proprietor hiding his identity by furnishing a wrong address, failure to attend any proceedings, availing excess ITC, engagement with non-existent firms, non-discharge of tax liability, identification as a fake firm in the fake firm drive, and failure to respond to DRC-01 notices under Section 74. The Revenue pointed out that the petitioner’s turnover had risen from approximately Rs. 9.92 crores in FY 2022-23 to over Rs. 45 crores in FY 2025-26.

The court acknowledged that the jurisdiction under Article 226 is not ousted merely on account of availability of an alternative remedy, but observed that the existence of such remedy is a relevant consideration, particularly where the dispute may require examination of disputed questions of fact. The proceedings arose in the backdrop of the Department’s ongoing drive against allegedly non-existent and fictitious GST registrations. Without expressing any opinion on the merits, the court relegated the petitioner to the appeal remedy under Section 107.

- 2026-juristway.com-1243-HC(Delhi)-GST  |  High Court of Delhi  |  W.P.(C) 13175/2026  |  09.09.2026