Bajaj Electricals Limited has announced a significant reduction in a tax demand following an appeal. The Appellate Authority, under Section 107 of the CGST Act 2017, has reduced the total demand to ₹15.63 lakh, including a general penalty of ₹0.72 lakh, from an initial demand of ₹1.04 crore.
The original assessment order was issued by the Deputy Commissioner of Sales Tax, Danapur 1, Bihar, under Section 73 of the GST Act, 2017. The demand was related to the alleged disallowance of Input Tax Credit due to mismatches with GSTR 2A for the financial year 2017-18. Bajaj Electricals had already filed an appeal against this order with the Office of the Additional Commissioner (Appeals), Danapur 1, Patna West, Bihar.
The company is currently evaluating further legal options, which may include filing an appeal before a higher appellate authority or a writ petition before the Hon’ble High Court against the Appeal Order.
Bajaj Electricals has clarified that the financial impact of the Appeal Order, if it materialises, would be limited to the extent of the demand raised and penalty levied. The company has assured that there will be no impact on its operational, financial, or other activities due to this order or assessment.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).