https://www.taxtmi.com/caselaws?id=180800 An assessment order is unsustainable where it is founded on a computation method not disclosed in the show-cause notice and where the assessing authority fails to deal with the assessee's objections by recording reasons. The Madras HC held that introducing a proportionate input tax credit refund formula for zero-rated sales without prior notice violated natural justice, because the assessee was not informed of the basis on which liability was proposed to be computed. It also found that the objections on the amended input tax credit provision were not meaningfully considered in relation to the assessee's manufacturing activity. The order was quashed and the matter remitted for fresh consideration after personal hearing. en-us Mon, 08 Dec 2014 00:00:00 +0530 Sat, 02 Apr 2016 10:29:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180800 An assessment order is unsustainable where it is founded on a computation method not disclosed in the show-cause notice and where the assessing authority fails to deal with the assessee's objections by recording reasons. The Madras HC held that introducing a proportionate input tax credit refund formula for zero-rated sales without prior notice violated natural justice, because the assessee was not informed of the basis on which liability was proposed to be computed. It also found that the objections on the amended input tax credit provision were not meaningfully considered in relation to the assessee's manufacturing activity. The order was quashed and the matter remitted for fresh consideration after personal hearing. Case-Laws VAT and Sales Tax Mon, 08 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180800