https://www.taxtmi.com/caselaws?id=280258 A penalty for alleged misclassification of sanitary fittings made of brass under the Kerala VAT regime could not stand where the authority had not first undertaken a reasoned classification exercise on the correct interpretative basis, including consideration of the specific brass entry against the residual entry. The HC held that penalty for misclassification requires a proper finding on classification and cannot rest on an unexplained residual treatment. It also noted that the assessee was entitled to a fair hearing before penalty was finalised. The impugned penalty orders were quashed and the matter was remitted for fresh decision after hearing the assessee, leaving the penalty issue open on merits. en-us Fri, 13 Feb 2015 00:00:00 +0530 Sat, 27 Apr 2019 06:36:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=280258 A penalty for alleged misclassification of sanitary fittings made of brass under the Kerala VAT regime could not stand where the authority had not first undertaken a reasoned classification exercise on the correct interpretative basis, including consideration of the specific brass entry against the residual entry. The HC held that penalty for misclassification requires a proper finding on classification and cannot rest on an unexplained residual treatment. It also noted that the assessee was entitled to a fair hearing before penalty was finalised. The impugned penalty orders were quashed and the matter was remitted for fresh decision after hearing the assessee, leaving the penalty issue open on merits. Case-Laws VAT and Sales Tax Fri, 13 Feb 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=280258