Input tax credit reversal under TNVAT requires reconsideration on merits where binding precedent was not applied.

Input tax credit reversal under the TNVAT Act required fresh consideration because the assessing authority had confirmed the reversal after a long interval and without giving effect to the settled legal position governing such claims. The petitioner's non-response supported the original confirmation, but binding precedent made reconsideration necessary. The HC set aside the impugned order and remitted the matter to the assessing authority for fresh adjudication on merits, leaving the tax demand open.

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Issues: Whether the order confirming reversal of input tax credit under Section 19 of the Tamil Nadu Value Added Tax Act, 2006 required interference and fresh consideration.

Analysis: The assessment order was passed after notices issued over a long interval, and the matter had to be decided in the light of the settled legal position governing input tax credit claims under the TNVAT regime. The petitioner's non-response had resulted in confirmation of the reversal, but the Court found it appropriate to apply the existing binding precedent and direct reconsideration of the matter by the assessing authority.

Conclusion: The impugned order was set aside and the matter was remitted to the respondent for fresh adjudication.

Final Conclusion: The writ petition was disposed of by restoring the issue to the assessing authority for a fresh order, leaving the tax demand open for reconsideration.

Ratio Decidendi: Where an assessment confirming reversal of input tax credit is required to be reconsidered in light of binding precedent, the proper course is to set aside the order and remit the matter for fresh decision on merits.

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