ITC couldn’t be denied without specific reasons and clause reference u/s 17(5)

Dhanalakshmi Steels Vs Assistant Commissioner (st) (Madras High Court) Conclusion: Any denial of ITC should clearly refer the applicable clause under Section 17(5) to allow the taxpayer a reasonable opportunity to contest the claim. The absence of such specification was deemed a violation of natural justice principles hence, the authorities were instructed to provide assessee with a fair opportunity to respond and submit relevant documents before issuing a fresh order. Held: Assessee challenged the impugned notice while proposing to invoke Section 17(5) stated that the Input Tax Credit should ...