Bajaj Electricals Limited has received two adverse appellate orders regarding GST demands for FY 2018-19. The Appellate Authority upheld previous demands totaling approximately ₹9.36 crore (including penalties). The company is evaluating legal remedies, including potential appeals to higher tribunals. The financial impact is limited to the demand and penalty amounts, with no other operational effects.
Adverse Appellate Orders Received
Bajaj Electricals Limited has announced the receipt of two unfavorable appellate orders concerning Goods and Services Tax (GST) demands for the financial year 2018-19. These orders were issued by the Office of the Commissioner (Appeals), Customs, Central Excise, Service Tax & CGST, Jaipur.
Details of the Orders
The Appellate Authority upheld the initial assessment orders, which imposed gross demands amounting to ₹2.83 crore (including a penalty of ₹25.68 lakh) in the first instance, and ₹6.53 crore (including a penalty of ₹59.37 lakh) in the second instance. These original demands were related to GST input mismatch issues identified from FY 2018-19.
Company’s Next Steps
The Company is currently evaluating its legal options and may pursue further appeals before the appropriate appellate tribunal or initiate writ proceedings before the Hon’ble High Court against these ‘Appeal Orders’.
Financial Impact
The potential financial impact of these orders, should they fully materialize, is expected to be confined to the extent of the demand raised and the penalties levied. The company has stated that there is no anticipated impact on its operational, financial, or other activities as a result of these specific orders.
Source: BSE
