Input tax credit mismatch reversals require fresh enquiry and notice before liability is finally determined.

Reversal of input tax credit based on mismatch required fresh adjudication under section 19(10)(a) of the Tamil Nadu Value Added Tax Act, 2006. The court applied the earlier binding decision on identical mismatch-based reversals and held that, where the assessee's claim and the nature of the mismatch call for fuller enquiry, the assessment cannot stand in its present form. Fresh consideration was required after issuance of a fresh show-cause notice. The assessment orders were therefore set aside and the matter remanded for fresh assessment.

---

---

Issues: Whether assessment orders reversing input tax credit and the consequential assessment proceedings were liable to be set aside and the matter remitted for fresh consideration following the earlier binding decision.

Analysis: The claim for input tax credit was examined in the light of section 19(10)(a) of the Tamil Nadu Value Added Tax Act, 2006 and the earlier decision that had dealt with identical mismatch-based reversals. The governing principle adopted was that where the assessee's claim and the nature of the mismatch require a fuller enquiry, the assessment cannot be sustained in its present form and fresh adjudication must follow after issuance of a fresh show-cause notice. The matter was therefore directed to be reconsidered in the manner already indicated in the earlier judgment.

Conclusion: The assessment orders were set aside and the matters were remanded for fresh assessment after issuance of fresh show-cause notice.

Ratio Decidendi: Reversal of input tax credit based on mismatch requires fresh adjudication through a proper enquiry and notice process before liability can be finally determined.

---