Elecon Engineering Company Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
ELECON · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Elecon Engineering has informed exchanges that the Commissioner (Appeal) has rejected its appeal against a GST Commissioner order related to disputed CENVAT Credit for Assessment Year 2017-18. The disputed amount is Rs. 1,020.19 Lakhs (approx. Rs. 10.2 crore). The Commissioner (Appeal) upheld that the disputed CENVAT Credit cannot be utilised by the company. Elecon plans to challenge this order by filing a Writ Petition before the High Court of Gujarat. The financial impact on the company cannot be quantified at this stage as the matter is still sub judice.
This is a negative development as the company has lost at the appellate level in a tax dispute worth over Rs. 10 crore. However, since Elecon is still pursuing the matter in the High Court, the final financial impact remains uncertain. Investors should monitor the High Court proceedings for any material outcome.