Finolex Cables Limited has received an order from the Additional Commissioner, Grade-II Appeal, Lucknow, regarding a GST demand for the financial year 2020-21. The authority has rejected the company’s appeal, upholding the original demand notice related to discrepancies in Input Tax Credit (ITC) and credit notes. The company is evaluating its options to challenge this decision before the appropriate Appellate Authority.
Background on the Tax Dispute
The tax demand arose during a routine scrutiny of GST returns for the 2020-21 financial year. The tax authorities identified alleged mismatches between the company’s Input Tax Credit (ITC) claims and reported credit notes. Despite the company’s efforts to appeal the initial findings, the Additional Commissioner has officially upheld the decision of the order in original.
Financial Implications
The total financial liability mentioned in the order stands at ₹12,28,985. This amount includes a base tax demand of ₹6,79,561, accrued interest of ₹4,81,468, and a penalty of ₹67,956. The company has clarified that this liability is not significant and will not have a material impact on its ongoing business operations or financial health.
Next Steps
While the current order has been upheld, the company retains the legal right to pursue further recourse. Management is currently reviewing the order and evaluating the option to file a formal appeal before the relevant Appellate Authority to resolve the matter.
Source: BSE
