The Madras High Court in the case of   TVL.Cleon Optobiz (P.) Ltd. v. Assistant Commissioner held that the reversal of ITC on the ground that the entity did not exist and did not conduct business is not tenable as per law. The petitioner produced all the relevant documents in front of the respected court, including invoices, e-way bills, and proof of payment of invoices in the form of relevant banks. However, the impugned order recorded a finding that the petitioner had not produced documents as required under GST law.

The Court also noted that the petitioner was not put on notice that goods dealt with by it were different from those dealt with by its supplier, but a finding was recorded on this issue in the impugned order. Therefore, it was held that the impugned order was liable to be quashed and the matter was to be remanded for reconsideration.