Madras HC Orders Fresh Adjudication On Former Directors’ Liability For Company’s GST Dues; Treats Bank Attachment As SCN

Madras HC directed fresh adjudication regarding former directors’ liability for a company’s GST dues. The court held that bank attachment constitutes a Show Cause Notice (SCN) and cannot substitute formal proceedings. This judgment underscores the procedural rigor required for recovery of statutory dues and clarifies responsibilities of directors in corporate tax compliance, offering guidance for corporate governance and administrative practice in GST enforcement.