Fraudulent GST ITC Claim via Bogus Invoices found during Inspection: Madras HC directs Department to Grant Personal Hearing

The Madras High Court has directed the GST authorities to grant a personal hearing in a case involving fraudulent ITC claims through bogus invoices. The case involved the fraudulent claim of input tax credits based on fictitious transactions. The court emphasized the need for the department to provide an opportunity for the taxpayer to present their side before proceeding with any further action. This ruling underscores the importance of due process and fair hearings in cases of alleged fraud, ensuring that taxpayers have a chance to defend themselves before penalties are imposed.