Jubilant Pharmova Slapped Rs 87.31 Crore GST Show Cause Notice Over Alleged ITC, Tax Discrepancies
New Delhi: Jubilant Pharmova Limited has received a show cause notice, issued by the Assistant Commissioner of Commercial Taxes (Enforcement)-4, Mysore, proposing a demand of GST, interest and penalty for the financial year 2022-2023.
The Show Cause Notice proposes demand of tax, interest and penalty on several issues such as alleged ineligible input tax credit (ITC), excess ITC availed and differential tax liability based on E-waybill records, among other matters. The opposing party in the matter is the Assistant Commissioner of Commercial Taxes (Enforcement)-4, Mysore.
Jubilant Pharmova stated that the company is in the process of taking necessary action to file a detailed reply before the Assistant Commissioner of Commercial Taxes (Enforcement)-4, Mysore, in response to the Show Cause Notice. The company will contest the proposed demand before the concerned authority.
According to Jubilant Pharmova, the Show Cause Notice is factually and legally incorrect, bad in law and has been issued without verifying the facts and examining the issue properly. The company further stated that no opportunity was provided to it before the issue of the notice and maintained that it has a strong case in its favour.
The company will file a detailed reply on merits along with documentary evidences before the Assistant Commissioner of Commercial Taxes (Enforcement)-4, Mysore. Jubilant Pharmova stated that, therefore, it expects no financial or operational impact from the matter.
The proposed demand comprises GST (Tax) of ₹33.58 crore, interest of ₹20.15 crore and penalty of ₹33.58 crore, taking the total proposed demand to ₹87.31 crore.
