Input tax credit discrepancy dispute remanded after opportunity to explain records and conditional deposit was accepted.

An assessment order concerning alleged input tax credit discrepancies was set aside and the matter remanded for fresh adjudication after the assessee was given an opportunity to file objections with supporting documents. The Court accepted that the assessee was willing to make a 10% deposit of the disputed tax and noted that the Revenue raised no serious objection to that course. The remand was made subject to compliance with the directed deposit and reconsideration of the matter on the assessee's explanation, giving the assessee only limited relief on procedural grounds.

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Issues: Whether the assessment order was liable to be set aside and the matter remitted for fresh consideration after granting the assessee an opportunity to explain the alleged input tax credit discrepancies, subject to a conditional deposit.

Analysis: The assessment was challenged on the ground that the discrepancies relating to input tax credit and supporting records had not been properly explained and that a further opportunity would enable the assessee to place its objections with documents. The Court noted that the assessee was willing to make a deposit of 10% of the disputed tax and that the Revenue had no serious objection to such a course. In the circumstances, the impugned assessment order was treated as requiring reconsideration with procedural safeguards.

Conclusion: The assessment order was set aside, the matter was remanded for fresh adjudication on compliance with the directed deposit and filing of objections, and the assessee succeeded only to that limited extent.

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