Automobile major Maruti Suzuki India on Friday said it has received a show cause notice from the GST Authority, demanding interest as well as penalty in the matter of tax liability under the reverse charge basis on certain services.
In a regulatory filing, the company said: “Show cause notice has been issued by the GST Authority for the period of July 2017 to August 2022, proposing to demand interest and impose penalty, besides appropriating tax already paid amounting to Rs 139.3 crore in matter of tax liability under the reverse charge basis on certain services.”
According to the company, it will file a reply before the adjudicating authority. “There is no impact on financial, operation or other activities of the company due to this show cause notice.”
The company also said it has received a favourable order from the High Court of Punjab and Haryana, which has dismissed an appeal filed by the Central Excise Department for denial of input service credit to the automaker.
The appeals were filed by the excise department for the period from June 2006 to March 2011.
“The Central Excise Department had filed appeals before the Hon’ble High Court of Punjab and Haryana against an earlier tribunal order of August 2016 which was passed in favour of the company, whereby input service credit on certain services was allowed to the company and the penalty was also dropped. The total tax and penalty amount involved in the department’s appeal was Rs 57.2 crore.”