The VAT department had slapped demand notices on Tivoli Garden Resort hotel asking it to pay Rs 115 crore as Value Added Tax from the year 2006 to 2010.
Tivoli had challenged the tax demand last year to which an appellate authority has lowered the tax liability from Rs 115 crore to Rs 8 crore, officials said.
The allegations of tax evasion was levelled against the resort and the city Lokayukta last year had recommended sacking of PWD Minister Raj Kumar Chauhan from Delhi Cabinet for trying to protect it in a tax evasion case.
President Pratibha Patil, however, had rejected the Lokayukta recommendation.
The Lokayukta order had come in a case pertaining to Chauhan's alleged involvement in influencing a team of tax officials when they were carrying out a survey at the premises of the resort in south Delhi in February 2010. PTI MPB RT
