Larsen & Toubro said on August 20 that the Bombay High Court has quashed a Rs 2,237-crore GST demand raised against the company.
“The Company had on August 14, 2023 filed a Writ Petition in the Bombay High Court against the show cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai towards Service tax demand of Rs 2,237 crore, on an erstwhile subsidiary, in respect of Tax already paid by the Company with respect to certain transactions undertaken post demerger,” L&T said in an exchange filing.
Following this, the company received the High Court’s order on August 19, allowing the Writ petition filed by the Company and has quashed and set aside the show cause notice issued by the GST authorities, the filing added.
In 2018, the Director General of GST Investigation, Mumbai had issued one show cause notice on October 18, 2018 against L&T Finance Ltd, alleging that additional interest, penal interest and default interest charged between 2013-14 to 2016-17 to customers is liable to service tax and goods and services tax (GST).
Further in 2020, the Principal Commissioner of CGST, Mumbai confirmed the show cause notice against L&T Finance in February 2020 following which L&T Finance filed an appeal against the said order before the Customs Excise and Service Tax Appellate Tribunal.
L&T Finance was asked to pay a principal amount of Rs 39.86 crore as additional GST tax for 2013-14, Rs 70.01 crore for 2014-25, Rs 105.02 crore for 2015-16, Rs 143.68 crore for 2016-17 and Rs 36.02 crore for Q1FY18.
Read more at: money control
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