Vedanta has received a Rs 15.43 lakh penalty order from the Assistant Commissioner, GST & Central Excise, Jharsuguda, Orissa. The order pertains to the alleged wrong use of Central Value Added Tax (CEVAT) credits.
In an exchange filing, the company said that the issue relates to the payment of Central Excise Duty during the fiscal year 2016-17. Further, the Orissa tax authorities have demanded, along with the 15.43 lakh penalty, tax and applicable interest on the amount.
Vedanta’s response
The penalty order was issued by the Orissa tax authorities on June 19 and was received by Vedanta on July 23. Vedanta says that it is planning to appeal against the penalty order with the concerned authorities.
Further, the company stated that it is hoping for a favourable outcome from the appeal, and therefore it does not expect any material financial impact from the received penalty order.
Previous tax penalties on Vedanta
On May 21, Vedanta received a Rs 1.8 crore tax penalty order from the Coimbatore Commissioner of GST and Central Excise. The issue was regarding the utilisation of Central Value Added Tax credits on the inputs purchased in the period between February 2010 and March 2011.
Before that, on May 16, Vedanta received a tax penalty order for Rs 146 crore from Vishakhapatanam’s Principal Commissioner of Central Tax. This tax penalty order was related to the non-payment of the Special Additional Excise Duty pertaining to Videocon’s shares.
Read more at: FINANCIAL EXPRESS
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