Turnover mismatch under VAT law remitted for fresh consideration after assessee was allowed to produce return records.

The Madras HC held that the assessment could not be sustained where the turnover difference between the annual report and monthly returns was disputed on the basis of additional return materials said to be available with the assessee. As the annual report figures were said to include consolidated branch and out-of-State unit turnover, and the assessee had collected relevant return copies for production, the matter required fresh consideration. The impugned assessment was set aside and remitted for reconsideration after the assessee produced the manual copies of returns and was heard.

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Issues: Whether the impugned assessment order, which treated the difference between the annual report turnover and the monthly returns turnover as taxable under the Tamil Nadu Value Added Tax Act, 2006, was liable to be set aside and the matter remitted for fresh consideration.

Analysis: The petitioner asserted that the turnover reflected in the annual report included consolidated figures from branches and units in other States and that the relevant return copies had been collected for production before the authority. In these circumstances, the Court found that the dispute required reconsideration on the basis of the additional return materials said to be available with the petitioner. Since the petitioner was to be given an opportunity to place those materials before the assessing authority, the impugned order was not sustained and the matter was directed to be reconsidered afresh after hearing the petitioner.

Conclusion: The impugned order was set aside and the matter was remitted to the respondent for fresh disposal after the petitioner produced the manual copies of returns and was afforded a hearing.

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