Please find enclosed herewith the intimation regarding the reciept of Demand order.
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Indo Euro Indchem Limited received a GST Demand Order alleging fraudulent availment of Input Tax Credit (ITC) worth Rs. 10,69,040 through fake/bogus e-way bills, in violation of Section 74(1) of the CGST Act, 2017. The authorities have demanded a penalty of Rs. 62,70,852 under Section 122 of the CGST Act for suppression of facts and generation of fake invoices/e-way bills. The company, based on advice of tax consultants, has decided to defend the matter before the appropriate/appellate authority and will file appropriate response within prescribed timelines. The financial impact is classified as a contingent liability, while operations remain unaffected.
The Rs. 62.7 lakh penalty demand represents a contingent liability if the company loses its appeal. The stock may face negative sentiment due to the fraud allegation, though the company intends to contest the order legally.