Delta Manufacturing Limited has informed the Exchange about General Updates
DELTAMAGNT · price
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Awaiting price reaction for this filing.
Delta Manufacturing Limited has received a Show Cause Notice from the Office of the Deputy Commissioner of State Tax, Nashik, under Section 63 of the CGST Act, 2017 and MGST Act, 2017 for FY 2021-22. The notice pertains to Arrow Textiles Private Limited, which merged with the company via an NCLT order dated 27th December 2019. The alleged issue is non-payment of GST, along with applicable penalty and interest, on the assignment/transfer of leasehold rights in land and an industrial shed on a leased MIDC plot. The total demand aggregates to INR 1,37,27,532 (approximately ₹1.37 crore). The company has stated that there is no material impact on its financial, operational, or other activities.
The demand amount of ~₹1.37 crore is not considered material by the company. However, if the notice culminates in an unfavorable order, it could lead to an outgo with interest and penalties. Near-term impact on the stock is likely limited, but investors should watch for further updates on the resolution of this tax matter.