CORPORATE
Bombay High Court sets aside Rs 2,237-crore GST demand against L&T
- IBJ Bureau
- Aug 21, 2024
Larsen & Toubro (L&T) said on Tuesday that the Bombay High Court quashed a Rs 2,237-crore GST demand raised against the company.
“The company had on August 14, 2023, filed a writ petition in the Bombay High Court against the show-cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai, towards Service Tax demand of Rs 2,237 crore on an erstwhile subsidiary in respect of tax already paid by the company with respect to certain transactions undertaken post-demerger,” L&T said in an exchange filing.
Following this, the company received the High Court’s order on August 19, allowing the writ petition filed by the company and has quashed and set aside the show-cause notice issued by the GST authorities, the filing added.
In 2018, the Director General of GST Investigation, Mumbai, had issued one show-cause notice on October 18, 2018, against L&T Finance, alleging that additional interest, penal interest and default interest charged between 2013-14 and 2016-17 to customers was liable to Service Tax and Goods and Services Tax (GST).
Further in 2020, the Principal Commissioner of CGST, Mumbai, had confirmed the show-cause notice against L&T Finance in February 2020, following which L&T Finance had filed an appeal against the order before the Customs Excise and Service Tax Appellate Tribunal.
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