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2019 (5) TMI 709 - HC - VAT and Sales TaxValidity of assessment order - difference of sales turnover between returns and Profit & Loss Account - Wrong claim of Input Tax Credit on inter state purchases - Purchases from RC cancelled dealers - TNVAT Act - HELD THAT:- This Court is of the considered view that the observation of the respondent that the petitioner has not produced any documentary evidence in support of the contention is totally absurd and has been made by total non- application of mind. Insofar as the claim relating to purchases from R.C. cancelled dealers is concerned, the respondent while reversing the input tax credit has observed that the petitioner has accepted the wrong claim of Input Tax credit from the non-existing TIN numbers of the other end sellers, which is totally incorrect. Even in the replies dated 12.10.2015 and 08.02.2016 to the pre-revision notice dated 09.09.2015, they have categorically denied that their wrongly claimed input tax credit for non-existing other side canceled dealers - Even before assessment proceedings, they have disclosed the correct TIN numbers of all other end sellers which is also extracted in the impugned assessment order. This being the case, the observation made by the respondent that the petitioner has accepted the wrong claim of ITC from the non-existing TIN Numbers i.e from cancelled dealers is absolutely incorrect. Mismatch claim - HELD THAT:- Since according to the respondent, the original tax invoices were not produced by the petitioner, the respondent has come to a wrong conclusion that the input tax credit has to be reversed on the ground of mismatch between the purchases reported by the petitioner and sales reported by the other end sellers - Under the impugned assessment order, a sum of ₹ 29,32,343/- towards reversal of input tax credit on account of mismatch was assessed by the respondents, which according to the considered view of this Court has been assessed by total non-application of mind - a penalty has also been assessed under Sections 27(3) and 27(4) of the TN VAT Act, 2006, which according to the considered view of this Court has also been passed by total non-application of mind. The impugned assessment order dated 30.11.2016 has been passed by the respondent by total non-application of mind and the same will have to be quashed - the matter is remanded back to the respondents for fresh consideration and the respondent shall pass final orders after giving adequate opportunity to the petitioner - Petition allowed by way of remand.
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