The Hon’ble Madras High Court in the case of Clear Secured Service Private Limited v. The Assistant Commissioner (ST) [Writ Petition No. 23402 of 2026, order dated July 01, 2026] held that the Revenue Department cannot confirm a tax proposal denying Input Tax Credit (“ITC”) solely on the ground that the supplier was subsequently declared non-existent, without duly examining the documentary evidence furnished by the assessee. Where the documents produced are found insufficient, the assessee must be afforded an opportunity to furnish additional evidence. Accordingly, the assessment order passed under Section 74 of the CGST Act was set aside and the matter was remanded for fresh adjudication.
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