Electronic trail verification controls VAT assessment where returns may have been filed through an unauthorised login.

The challenge to the assessment order under the Tamil Nadu VAT Act was not sustained on the plea that registration had been surrendered, as the contemporaneous supporting documents appeared doubtful at the prima facie stage. The dispute instead centred on whether returns for the relevant period were filed through the assessee's login by an unauthorised person, making verification of the electronic trail decisive. The Court directed forensic examination of the Department's records, identification of the IP address used for the transactions, supply of the material to the assessee, and assistance from the Cyber Crime Cell. Fresh consideration and a new order were required after that verification.

---

---

Issues: Whether the assessment order confirming tax and penalty under the Tamil Nadu Value Added Tax Act, 2006 could be sustained in the light of the petitioner's claim that the registration had been surrendered and that the returns were filed using the petitioner's login ID by an unauthorised person, and whether the matter required verification of the electronic trail and fresh consideration.

Analysis: The petitioner's plea that the VAT and CST registration had been surrendered on 25.12.2014 was not accepted at the prima facie stage, as the contemporaneous documents relied upon by the petitioner appeared doubtful. At the same time, the dispute turned on whether the returns for the relevant period were filed through the petitioner's account using a particular IP address, which required verification from the Department's electronic records. The Court therefore directed the Department to conduct a forensic examination of its records, ascertain the IP address from which the transactions were made, furnish the material to the petitioner, and obtain assistance from the Cyber Crime Cell, since the controversy also implicated misuse of information technology systems.

Conclusion: The challenge to the assessment order was not accepted on the surrender plea, but the matter was directed to be re-examined after forensic verification of the electronic records and a fresh order was to be passed in accordance with law.

---