Under declaration of Ineligible ITC: Madras HC directs to lift Bank Account proceedings on 10% Pre-deposit

The Madras High Court has directed the lifting of bank account proceedings and pre-deposit orders for ineligible Input Tax Credit (ITC) due to under-declaration. The case involved the recovery of dues arising from under-declared ITC. The court ruled that the bank account proceedings should be lifted, as the taxpayer was entitled to challenge the disallowance. This ruling protects taxpayers’ rights while they dispute claims related to ITC eligibility and ensures that undue financial pressure is not applied during the resolution process.