Company letter dated February 20, 2025 intimating the Stock Exchange on the order received on February 18, 2025 for Service Tax Demand and Penalty for the period October 01, 2014 to June 30, 2017.
NOVARTIND · price
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Awaiting price reaction for this filing.
Novartis India has informed the stock exchange that the Commissioner (Appeals-II), CGST & Central Excise, Mumbai has confirmed an earlier Service Tax (CENVAT Credit) demand for the financial year 2014-15. The total financial impact is roughly INR 30.06 lakhs, comprising a Service Tax demand of about INR 15.02 lakhs, a penalty of about INR 15.04 lakhs, and interest (yet to be quantified). The original dispute relates to the period October 2014 to June 2017 and pertains to non-reversal of common input tax credit on sale of business on a going-concern basis. The company has stated it is evaluating options and intends to file a further appeal with the appropriate authority.
The demand amount is small relative to Novartis India's overall size and is unlikely to materially affect the stock price or business. However, the company has lost at the first level of appeal and the case could drag on, requiring shareholder tracking of further updates.