Input tax credit mismatch revision fails without invoice-wise particulars and fair opportunity before reassessment.

A mismatch-based reversal of input tax credit under the Tamil Nadu VAT regime could not be sustained where the revision notice omitted invoice-wise particulars, the other dealer's name or TIN, and the web report forming the basis of the alleged discrepancy. The court held that a dealer can meaningfully answer a proposed revision only when full material particulars and the prima facie basis are disclosed, together with a fair opportunity to respond. The revised assessment orders were set aside and the matter remanded for fresh consideration, with directions to issue complete particulars in any fresh notice, conduct enquiry, and afford personal hearing.

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Issues: Whether revised assessment orders reversing input tax credit, passed on the basis of mismatch between Annexure I and Annexure II without furnishing invoice-wise particulars and the web report and without affording adequate opportunity, were sustainable.

Analysis: The assessment was based on a mismatch notice issued under the Tamil Nadu Value Added Tax regime, but the notice did not disclose the name or TIN of the other-end dealer or enclose the web report on which the mismatch was founded. In mismatch cases, the departmental circular required invoice-wise particulars to be mandatorily attached to the notice, and the earlier decision relied upon had explained that a dealer can effectively answer a proposed revision only when full particulars and the basis of the prima facie view are furnished. Those requirements were not followed before passing the impugned orders.

Conclusion: The revised assessment orders were not sustained and the matter was remanded for fresh consideration, with directions to conduct enquiry, furnish complete particulars in any fresh notice, and afford personal hearing.

Ratio Decidendi: A mismatch-based revision of assessment cannot be sustained unless the assessee is supplied the material particulars, including invoice-wise details and the basis of the alleged mismatch, and is given a fair opportunity to meet the proposed revision.

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