Tata Steel has received a demand cum show cause notice from CGST & Central Excise of Jamshedpur, Jharkhand. The notice pertains to the irregular availing of Rs 890.52 crore of Input Tax Credit for the period FY19 through FY21.
In an exchange filing, Tata Steel said that it received the notice, which is dated June 13, on Wednesday. The show cause notice has asked the company why the amount should not be demanded and recovered from the company.
Furthermore, the show cause notice has asked why the authorities should not impose interest and penalty on the company for irregularly availing Input Tax Credit.
Tata Steel’s response
According to the exchange filing, Tata Steel is required to appear before the Additional/Joint Commissioner, CGST & Central Excise, Jamshedpur, within a period of 30 days from the date of receiving the notice and show cause for the alleged irregularities.
Tata Steel said that the Show Cause Notice has no merit, and it will make a submission of its case before the adjudicating authorities within the given timeline of 30 days. Additionally, the company clarified that at present, there is no impact on the financial and operational activities of the company due to the Show Cause Notice of by the authorities.