Wrongful Availment of GST ITC and Fake Invoices: Orissa HC Declines to Enter Disputed Facts, Directs to Avail Alternative Remedy

The Orissa High Court addressed a case involving the alleged wrongful availment of Input Tax Credit (ITC) using purportedly fake invoices. The petitioner challenged the tax authorities’ demand, but the Court emphasized that courts should not decide disputed factual issues at the writ stage. Instead, the petitioner was directed to avail statutory remedies, such as filing appeals under the GST Act and following the procedural adjudication process. The Court highlighted that judicial intervention at this stage would circumvent the statutory mechanisms and undermine procedural safeguards established under GST law. The judgment reinforces the principle that taxpayers must exhaust alternative remedies before approaching courts and ensures that due process is maintained in ITC disputes. Authorities were reminded to follow proper procedures and provide the petitioner with opportunity for representation. This ruling clarifies the boundaries of judicial review in GST matters, particularly in cases involving complex factual disputes over ITC and alleged invoice fraud. It safeguards the procedural rights of taxpayers while upholding the integrity of tax administration.