https://www.taxtmi.com/caselaws?id=399842 Non-star hotels could not be treated as falling within the star-hotel category under the Tamil Nadu VAT Act merely because input tax credit had been claimed. The statutory distinction between Section 7(1)(a) and Section 7(1)(b) remained unchanged by the credit claim, and any wrongly claimed credit had to be addressed through reversal under Section 27(2) rather than by misclassification under an inapplicable charging provision. On that basis, the levy of tax and consequential penalty were held unsustainable, the impugned orders were quashed, and the matter was remitted for reconsideration after giving the petitioners an opportunity of hearing. en-us Mon, 14 Sep 2020 00:00:00 +0530 Wed, 21 Oct 2020 09:34:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=399842 Non-star hotels could not be treated as falling within the star-hotel category under the Tamil Nadu VAT Act merely because input tax credit had been claimed. The statutory distinction between Section 7(1)(a) and Section 7(1)(b) remained unchanged by the credit claim, and any wrongly claimed credit had to be addressed through reversal under Section 27(2) rather than by misclassification under an inapplicable charging provision. On that basis, the levy of tax and consequential penalty were held unsustainable, the impugned orders were quashed, and the matter was remitted for reconsideration after giving the petitioners an opportunity of hearing. Case-Laws VAT and Sales Tax Mon, 14 Sep 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=399842