Input tax credit mismatch notices must give invoice-wise particulars and a meaningful opportunity before reversal of credit.

Revised assessment orders withdrawing input tax credit on alleged mismatch could not be sustained because the pre-revision notices failed to furnish invoice-wise particulars or the web report needed for reconciliation. The Court noted that the applicable circular required mismatch data to accompany the notice in print, CD, or email form, and the earlier mismatch-assessment procedure demanded prior verification and a meaningful show-cause notice with full particulars. As those safeguards were not followed, the orders were set aside and the matter was remitted for fresh consideration after proper enquiry, supply of particulars, opportunity to object, and personal hearing.

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Issues: Whether the revised assessment orders reversing input tax credit based on mismatch allegations could be sustained when the pre-revision notices did not furnish invoice-wise particulars and the prescribed procedure for mismatch verification was not followed.

Analysis: The notices were found to be deficient because they did not supply the web report or complete particulars necessary for the purchasing dealer to reconcile the alleged mismatch. The Circular issued by the Commissioner of Commercial Taxes required invoice-wise mismatch data to be enclosed with the notice either in print form, CD, or email, and the procedure discussed in the earlier decision on mismatch assessments required prior verification and a meaningful show-cause notice with full particulars. Those requirements were not complied with in the present case.

Conclusion: The revised assessment orders were unsustainable and were set aside, with the matter remitted for fresh consideration after proper enquiry, supply of particulars, opportunity of objection, and personal hearing.

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