Bajaj Auto Limited informed the exchanges on Tuesday, December 2, that it has received an order from the Deputy Commissioner, Rudrapur, raising a tax demand of Rs 34,73,88,774 along with a penalty of Rs 3,47,38,877 under Section 73 of the CGST Act, 2017. The communication was received by the company on December 1 at around 4 pm.
According to the order, the demand has been raised over the alleged misclassification of spare parts supplied by the company. Tax authorities have stated that since Bajaj Auto is a vehicle manufacturer, the customized spare parts used in its vehicles should be classified as auto parts, rejecting the company’s long-followed classification based on the General Rules of Interpretation.
In response, Bajaj Auto said it has a strong case on merit, adding that it has been consistently classifying parts and accessories for over three decades using established interpretation principles, supported by judicial precedents. The company clarified that it believes the demand is not maintainable in law and confirmed it will pursue appropriate legal remedies, as the order is appealable.
The filing also stated that there is no material impact on the company’s financials, operations, or other activities arising from the order.
