Unaware of GST Proceedings on Wrongful ITC Availment: Madras HC remanded for Reconsideration on 10% Pre-deposit Condition [Read Order]

The Madras High Court remanded the matter for reconsideration concerning a 10% pre-deposit, noting that the petitioner was not afforded a hearing before the GST assessment order was issued, due to non-response to the show cause notice or availing of a personal hearing. \r

Pranav Industries contended the tax proposal involved alleged wrongful Input Tax Credit (ITC) availment, asserting possession of all necessary documents proving receipt of goods and payment of due amounts to suppliers, intending to demonstrate eligible ITC claim. Counsel agreed on behalf of the petitioner to remit 10% of the disputed tax demand for remand. \r

Government Advocate Mr. V. Prashanth Kiran acknowledged notices issued, but the court found the petitioner's lack of hearing unjust. It set aside the order, stipulating remittance of 10% within two weeks and allowing a response to the notice. The court directed a fresh order within three months after a personal hearing, lifting bank attachments and disposing of the petition.