Natural justice breach in input tax credit reversal led to remand for fresh consideration and hearing.

Reversal of input tax credit under the Tamil Nadu Value Added Tax Act was held procedurally defective where the assessee had sought invoice details, seller names, dates and sale values to answer the proposal, but the assessment order confirmed reversal without supplying those particulars or giving reasons. The defect was treated as a breach of natural justice because it denied a meaningful opportunity to object. The matter was therefore remitted for fresh consideration with the requisite particulars, objection opportunity and personal hearing, while the remaining disputed factual issues were left to be pursued under the statutory remedies.

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Issues: Whether the assessment order reversing input tax credit was liable to be set aside for violation of natural justice and whether the matter required fresh consideration by the Assessing Officer.

Analysis: The petitioner sought particulars such as invoice numbers, dates, names of sellers and sale value before answering the proposal to reverse input tax credit under Section 19(16) of the Tamil Nadu Value Added Tax Act, 2006. The assessment order, however, confirmed the reversal without furnishing the requested details or assigning reasons. As the petitioner was denied a meaningful opportunity to meet the proposal, the defect in procedure amounted to breach of the principles of natural justice. The other issues involved disputed questions of fact and were left to the statutory remedies under the Act.

Conclusion: The order reversing input tax credit on the concerned issue was set aside and the matter was remitted for fresh consideration after furnishing the requisite particulars and granting opportunity of objection and personal hearing. The remaining issues were not decided on merits in the writ petitions.

Final Conclusion: The writ petitions succeeded only to the extent of the remand on the input tax credit issue, while the other issues were left open for the petitioner to pursue under the statutory mechanism.

Ratio Decidendi: An assessment that confirms reversal of input tax credit without supplying the material particulars sought by the assessee and without affording an effective opportunity to respond is vitiated for breach of natural justice and warrants remand for fresh consideration.

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