Flair Writing Industries Limited has informed the Exchange about Action(s) initiated or orders passed
FLAIR · price
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Awaiting price reaction for this filing.
Flair Writing Industries has received a summary show-cause notice from the Office of the Assistant Commissioner of CGST & C.Ex., Div-X, Mumbai East, regarding alleged excess Input Tax Credit (ITC) claimed for FY 2018-19. The total demand is Rs. 27,54,100/-, split equally between a tax component of Rs. 13,77,050/- and a matching penalty of Rs. 13,77,050/-. The company states it will challenge the notice on strong merits by filing its reply before the relevant authorities. Management has clarified that there is no material impact on financials, operations, or other activities, with impact limited to the final tax liability that may be determined along with any interest and penalty.
The demand amount is small relative to a listed company's operations, and the company intends to contest it, so the immediate financial and stock impact is likely limited. However, if the dispute is not resolved in the company's favour, the final liability could increase with interest and penalties, creating a modest overhang.