TMI Blog2020 (10) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... ls, which are not under the Star Category . The distinction is very clear on a bare reading of the section itself. As such, the very basis on which the petitioner has been brought under the purview of Section 7(1)(a), is contrary to the provision. As rightly pointed out by the learned counsel for the petitioner, even assuming that the petitioner had wrongly claimed ITC, the only option available to the Department would be to reverse the ITC as provided under Section 27(2) of the TNVAT Act. Such a submission is correct and proper. As such, if the respondent was of the view that the claim of ITC has been wrongly made, the only option available is to reverse such an ITC instead of bringing them under the purview of Section 7(1)(a) of the TN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable to pay tax only under Section 7(1)(b) of the TNVAT Act. 4. Mr.R.Swarnavel, learned Government Advocate, on the other hand, objected to such a submission and submitted that since the petitioner had claimed ITC, Section 7(1)(a) would be attracted and therefore, there is no infirmity in the order passed by the respondent. 5. Section 7(1)(a) and 7(1)(b) of the TNVAT Act reads as follows: 7.Levy of taxes on food and drinks:- (1) Notwithstanding anything contained in this Act, but subject to the provisions of this Act,- a)every dealer shall pay tax on the sale of ready to eat un-branded foods including sweets, savouries, un-branded non-alcoholic drinks and beverages served in or catered indoors or outdoors by star ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the provision. 7. As rightly pointed out by the learned counsel for the petitioner, even assuming that the petitioner had wrongly claimed ITC, the only option available to the Department would be to reverse the ITC as provided under Section 27(2) of the TNVAT Act. I find such a submission to be correct and proper. As such, if the respondent was of the view that the claim of ITC has been wrongly made, the only option available is to reverse such an ITC instead of bringing them under the purview of Section 7(1)(a) of the TNVAT Act. As such, the levy of tax under Section 7(1)(b) and the consequential penalty imposed, cannot be sustained. However, if the respondent is granted an opportunity to rework the issue by taking into consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
