ITC Claimed more than Permissible: Madras HC sets aside GST Assessment Order Considering Hearing not provided on 10% Pre-deposit

The Madras High Court set aside a GST assessment order where the Input Tax Credit (ITC) claimed exceeded permissible limits, after noting that the taxpayer was not provided a hearing prior to the pre-deposit requirement. The court emphasized adherence to principles of natural justice, which mandates that taxpayers be allowed to present their case satisfactorily. The decision reinforces the necessity of providing adequate opportunity for defense before finalizing any assessment, ensuring that procedural fairness is upheld in tax matters. This ruling serves as a crucial reminder for tax authorities to conduct thorough hearings and consider taxpayer submissions before imposing any financial liabilities.