Hindustan Zinc Limited has received an order from the Office of the Commissioner, Central Goods & Service Tax – Udaipur, confirming a penalty of ₹73,46,112. This is related to the reversal of CENVAT credit availed on cement used as input in mines between July 2016 and June 2017. The company intends to appeal the order and does not anticipate any material financial impact.
CENVAT Credit Penalty
Hindustan Zinc Limited has received an order regarding CENVAT credit. The penalty, issued by the Office of the Commissioner, Central Goods & Service Tax in Udaipur, amounts to ₹73,46,112, along with the applicable tax demand and interest.
Details of the Issue
The issue pertains to the reversal of CENVAT credit previously availed on cement. This cement was used as input in mines during the period from July 2016 to June 2017.
Company’s Response
The company plans to file an appeal against this order before the Appellate Authority within the stipulated timeframe. Based on the merits of its case, Hindustan Zinc is hopeful of a favorable outcome. The company does not foresee this order having a significant material financial impact.
Source: BSE
