https://www.taxtmi.com/caselaws?id=396307 A non-statutory circular under the Tamil Nadu VAT regime was not liable to be quashed merely because it guided assessments, as it was treated as subordinate guidance consistent with the earlier binding decision on the same scheme. By contrast, reversal of input tax credit for alleged invisible loss could not be directed on a mechanical uniform percentage basis. The assessing authority was required to issue a clear show cause notice, consider the dealer's objections, and make a fact-specific enquiry before taking any adverse action. The circular challenge failed, while the assessment notice was set aside and remitted for fresh consideration in accordance with law. en-us Wed, 03 Jun 2020 00:00:00 +0530 Tue, 30 Jun 2020 11:40:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396307 A non-statutory circular under the Tamil Nadu VAT regime was not liable to be quashed merely because it guided assessments, as it was treated as subordinate guidance consistent with the earlier binding decision on the same scheme. By contrast, reversal of input tax credit for alleged invisible loss could not be directed on a mechanical uniform percentage basis. The assessing authority was required to issue a clear show cause notice, consider the dealer's objections, and make a fact-specific enquiry before taking any adverse action. The circular challenge failed, while the assessment notice was set aside and remitted for fresh consideration in accordance with law. Case-Laws VAT and Sales Tax Wed, 03 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396307