GST Proceedings on ITC known after Bank Account Attachment: Madras HC directs Fresh Adjudication on 10% Pre-deposit [Read Order]

The Madras High Court has remanded a GST matter concerning Input Tax Credit (ITC) back for fresh adjudication, requiring a 10% pre-deposit. The petitioner discovered the proceedings only when their bank account was attached in March 2024, as notices were solely uploaded on the GST portal’s "View Additional Notices and Orders" tab. \r

The petitioner asserted that ITC reversal was unwarranted, backed by invoices, payment proof, and other documents. They expressed readiness to deposit 10% of the disputed tax for reconsideration. Responding, Mr. C. Harsha Raj, representing the respondents, noted prior notices and hearings. \r

Justice Senthilkumar Ramamoorthy's bench reviewed evidence supporting the petitioner's claims against Kiran Distributors. The court annulled the September 27, 2023 order, contingent on the petitioner remitting 10% within two weeks and submitting a response. \r

Upon confirmation of payment, the respondents must allow a personal hearing and issue a new order within three months, lifting the bank attachment. The writ petition was thereby resolved.