Chemicals maker BASF India on Wednesday said that the Karnataka High Court has quashed the order of Central Sales Tax Appellate Authority (CSTAA). “We refer to our intimation dated November 1, 2022, wherein the company had informed regarding the favourable order passed by the Hon’ble Karnataka High Court dated October 14, 2022, by allowing the Writ Petition filed by the Company against the Order passed in 2019 by the Central Sales Tax Appellate Authority, New Delhi (CSTAA) in respect of demand notices from the Commercial Tax Department, Karnataka aggregating to Rs 764.01 crores for the tax periods April 2006 to June 2017,” the company said in a regulatory filing.
The Karnataka High Court held that inter-state movement of goods in this specific case were merely ‘Stock Transfers’.
BASF further stated that the company has received intimation on 26th September, 2023 that the Tax Department has filed a Special Leave Petition before the Supreme Court against the aforesaid order of the Karnataka High Court, which is subject to admission.
Earlier in July, BASF India reported a fall in its first-quarter profit, hurt by weak sales and higher input costs. It said that the profit for the quarter ended June 30 fell nearly 43 per cent to Rs 1.13 billion, while sale of products fell to Rs 33.43 billion from Rs 38.58 billion a year ago.