MRPL has received an Order-in-Original (OIO) from the Commissioner of Central Excise & Central Tax concerning demands raised on GST Input Tax Credit (ITC) availed between FY 2019-20 and FY 2023-24. The basic demand totals ₹10.97 crore, with an associated penalty of ₹12.79 crore. The company believes the order is unjustified, intends to file an appeal, and currently anticipates no significant financial impact.
Receipt of Statutory Order
Mangalore Refinery and Petrochemicals Limited (MRPL) has formally acknowledged receipt of an Order-in-Original (OIO) from the relevant authority in Mangaluru. This communication pertains to past scrutiny regarding tax compliance.
Summary of Material Contents
The core of the order stems from a previous Show Cause Notice (SCN) issued by the GST Department. The authority has passed an order demanding reversal on certain issues related to the availment of Goods and Services Tax (GST) Input Tax Credit (ITC). The specified periods under review are from FY 2019-20 up to FY 2023-24.
Financial Demands Imposed
The communication specifies the following demands:
- Basic Demand Amount: ₹10,96,99,437/-
- Penalty Imposed: ₹12,79,10,256/-, plus applicable interest.
Company Response and Financial Outlook
MRPL has confirmed that it is currently reviewing the entire Order. The management holds the view that the OIO is not justified and unsustainable in law. Consequently, the company plans to file an appeal with the appropriate legal authorities within the prescribed timeline to challenge the findings. At this stage, MRPL has determined that there will be No Significant impact on the company’s size and scale of operations due to this matter.
Source: BSE
