https://www.taxtmi.com/caselaws?id=790283 The reversal of input tax credit and penalty under the Tamil Nadu Value Added Tax Act could not be sustained where the show cause notice proceeded on an incorrect premise and failed to examine the dealer's specific claim that the credit was adjusted only against VAT on the sale of old windmills, not against exempt electricity sales. Because the assessment and appellate orders did not address that distinction, the defect in the notice was treated as fundamental. Any fresh correction would have required a new notice, which was held to be time-barred under Section 27. Interference was therefore warranted in favour of the assessee. en-us Tue, 21 Apr 2026 00:00:00 +0530 Thu, 23 Apr 2026 09:45:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790283 The reversal of input tax credit and penalty under the Tamil Nadu Value Added Tax Act could not be sustained where the show cause notice proceeded on an incorrect premise and failed to examine the dealer's specific claim that the credit was adjusted only against VAT on the sale of old windmills, not against exempt electricity sales. Because the assessment and appellate orders did not address that distinction, the defect in the notice was treated as fundamental. Any fresh correction would have required a new notice, which was held to be time-barred under Section 27. Interference was therefore warranted in favour of the assessee. Case-Laws VAT / Sales Tax Tue, 21 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790283