Input tax credit mismatch must be supported by notice and reasoned consideration before adverse revision is sustained.

Assessment revision based on an alleged input tax credit mismatch was found unsustainable where the adverse finding rested on a ground not raised in the show cause notice, namely movement of goods, and ignored the dealer's explanation that some sellers had filed returns manually while others had filed them electronically. The authority also failed to deal with the supporting materials, the reduced discrepancy on verification, and the case law cited by the dealer. The finding on the input tax credit difference was set aside, and the matter was remanded for fresh consideration after notice, personal hearing, disclosure of the relevant invoice numbers, and a speaking order in accordance with law.

---

---

Issues: Whether the revision of assessment relating to the alleged difference in input tax credit was sustainable and whether the matter required remand for fresh consideration.

Analysis: The dispute concerned the difference between the input tax credit claimed by the dealer and the tax reflected in the sellers' Annexure II statements. The notice did not call upon the petitioner to establish movement of goods, yet the impugned order proceeded on that ground, introducing a basis not put to the petitioner in the show cause notice. The order also failed to consider the petitioner's specific explanation that some sellers had filed returns and Annexure II manually, while others had filed them electronically, and that the discrepancy had been reduced on verification. The respondent did not deal with the supporting materials or the cited decisions relied on by the petitioner, and the reasoning recorded was not sufficient to sustain the adverse finding.

Conclusion: The finding on the difference in input tax credit was set aside and the matter was remanded to the respondent for fresh consideration after notice, personal hearing, disclosure of the invoice numbers concerned, and a speaking order in accordance with law.

---