A prominent Pharma company, Sun Pharmaceutical Industries Ltd announced that it has been served with a tax demand totaling over Rs 1.11 crore by authorities. The demand arises from an order issued by the Joint Commissioner, CGST and Central Excise, under the Goods and Services Tax ( GST ) Act.
According to the filing, the order outlined a demand of Rs 1,11,60,156, which includes a penalty of Rs 11,16,016 alongside applicable interest. The reason cited for this demand is the disallowed input tax credit attributed to inadmissible transitional credit.
The company has assured stakeholders that there would be no significant impact on the company’s financial position, operations, or other activities, reported BS.
In 2020, the Sikkim High Court rejected the plea seeking the refund of Central Goods and Service Tax ( CGST ) and 50% of Integrated Goods and Service Tax ( IGST ) paid through the electronic cash ledger.
The court opined that the prayers in the writ petition are confined to enabling the Petitioner to claim a full refund of the CGST and 50% of the IGST paid through the electronic cash ledger. It cannot be said that the Petitioner was unaware of the provision of the statute the vires of which they now seek to assail, nor was it inserted at some point later in time to the filing of the Writ Petition.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
