Clear Secured Service (P.) Ltd. v. Assistant Commissioner (ST)
In favour of the assessee; matter remanded
The ruling in brief
Clear Secured Service (P.) Ltd. (Madras High Court, WP 23402 of 2026, 1 July 2026, Senthilkumar Ramamoorthy, J.) had input tax credit reversed following Section 73 show cause tied to supplier whose registration was later cancelled. Assessee produced bank statements, tax invoices, e-way bills, ledgers and GSTR-2A/2B reconciliations under Section 16 eligibility principles. Adjudicating authority reversed ITC solely due to supplier cancellation without evaluating documentary proof or granting opportunity to adduce further evidence (Sections 74 and 75 procedural fairness). Order unsustainable; set aside with direction for fresh adjudication considering entire record. Outcome: in favour of the assessee; matter remanded. Recipient ITC defences require merit review beyond supplier status changes. Not legal advice. This editorial note is for Chartered Universe professional research and is not legal advice.
For information only — not legal advice. Read the full judgment and applicable law before relying on this summary.
Provisions considered
- CGST S.73 — Determination of tax not paid or short paid (non-fraud cases).
- CGST S.16 — Eligibility and conditions for taking input tax credit.
- CGST S.74 — Determination of tax not paid or short paid involving fraud or suppression.
- CGST S.75 — General provisions relating to determination of tax.
Source documents
Similar rulings
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