Unaware of GST Proceedings on ITC Availment as Registration already cancelled: Madras HC sets aside and remands matter on 10% Pre-deposit [Read Order]

The Madras High Court overturned an order concerning GST Input Tax Credit (ITC) availment due to procedural errors, requiring a 10% pre-deposit of the disputed tax demand. Ziss Enterprises Pvt. Ltd., a leather goods trader, had its GST registration cancelled prior to the proceedings, unbeknownst to them until after the confirmed tax proposal. The court acknowledged the procedural lapse where the tax proposal was confirmed without the petitioner's presence during the proceedings. Justice Senthilkumar Ramamoorthy directed a remand of the matter, allowing the petitioner to remit 10% of the disputed tax demand within two weeks. The petitioner was also granted the opportunity to respond to the show cause notice within this timeframe. A fresh assessment by the respondents was mandated within three months upon compliance.