Clear Violation of Principles of Natural Justice: Madras HC remands GST ITC Discrepancy for reconsideration on Rs. 1.4 Cr Pre-Deposit Condition

The Madras High Court found a clear violation of the principles of natural justice in a case involving discrepancies in GST Input Tax Credit (ITC) and remanded the matter for reconsideration. The case concerned a Rs. 1.4 crore pre-deposit condition imposed on the taxpayer for rectifying the ITC mismatch. The Court observed that the taxpayer was not granted a fair opportunity to address the discrepancies before the order was passed. It directed the GST authorities to reconsider the matter in line with the principles of natural justice, ensuring that the taxpayer’s rights are protected during the assessment process.