JKM Graphics procedure governs mismatch-based reassessment, leading to setting aside and fresh assessment under VAT law.

A revised assessment under the Tamil Nadu Value Added Tax Act, 2006 based on mismatch could not be sustained without following the JKM Graphics procedure. The challenge was confined to non-compliance with that framework, while the factual dispute over service of the revisional notice was left open. Applying the earlier order on identical facts, the Madras High Court set aside the revised assessment and remitted the matter to the assessing authority for fresh assessment in accordance with law after considering the supporting documents produced by the taxpayer.

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Issues: Whether the revised assessment order under the Tamil Nadu Value Added Tax Act, 2006 was liable to be set aside for non-adherence to the JKM Graphics principle and the matter remitted for fresh assessment.

Analysis: The impugned revised assessment was made under Section 27 of the Tamil Nadu Value Added Tax Act, 2006. The challenge was confined to the absence of compliance with the procedure laid down in JKM Graphics in cases involving mismatch-based revision. The factual dispute regarding service of the revisional notice was left open, and the decisive consideration was that the assessment could not be sustained without applying the JKM Graphics framework. The Court therefore followed the earlier order in identical facts and directed a fresh assessment after the petitioner produced supporting documents.

Conclusion: The revised assessment order was set aside and the matter was remitted to the assessing authority to redo the assessment in accordance with law by applying the JKM Graphics principle.

Ratio Decidendi: A revised assessment based on mismatch cannot be sustained unless the assessing authority follows the JKM Graphics procedure before finalising the revision.

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