Mangalore Refinery and Petrochemicals Ltd (MRPL) has received a tax order from the office of the Commissioner of Central Excise and Central Tax, Mangaluru, involving tax demands and penalties exceeding ₹23 crore.
MRPL informed the stock exchanges on Tuesday that it received the order on March 30.
The company said: “GST Department had raised show-cause notice on various issues and has passed order for demand on some of the issues related to availment of GST input tax credit for the period FY 2019-20 to FY 2023-24 to the tune of ₹10,96,99,437 (basic amount) and penalty of ₹12,79,10,256 with interest as applicable.”
Regarding the expected financial implications, the company expects ‘no significant impact’ given the size and scale of its operations.
MRPL informed the stock exchanges that at this stage, the company is of the view that the order in the original is not justified and unsustainable in law. The company is reviewing the order and shall file an appeal against the said order within the prescribed timeline, it said.