The Hi-Tech Gears Limited has informed the Exchange about General Updates
HITECHGEAR · price
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The Hi-Tech Gears Limited has received a favorable order from the Commissioner (Appeals) CGST, Central Excise and Customs, Jaipur dated April 22, 2025 (received on May 5, 2025). The order, passed under Section 107 of the CGST Act 2017, rules that there is no infirmity in the company's classification of its forged products (gears, crank shafts, main shafts) under HSN 7326, and that the earlier demand confirmed by the adjudicating authority is not sustainable and liable to be dropped. The dispute related to the period July 2017 to December 2018, where the tax department had alleged short-payment of IGST of around Rs. 3.69 crore plus interest of around Rs. 2.59 crore, claiming the products should have been classified under HSN 8483/8714 instead of 7326. The company had already deposited the disputed amounts under protest during the investigation. The company has stated there is no impact on its financials, operations, or other activities.
This is a positive legal outcome for the company, as it clears a long-pending tax classification dispute and potentially opens the door to a refund of the Rs. 6.28 crore deposited under protest. However, since the company has stated there is no financial impact, the amounts may have already been provided for in the books, so the stock is unlikely to see a sharp reaction on this news alone.