Mankind Pharma Limited Receives an Order from Office of the Principal Commissioner, CGST, Meerut
Mankind Pharma Limited informed that the Company has received an Order on 22 November 2024 from Office of the Principal Commissioner, CGST, Meerut - issued by Additional Commissioner (Department) under Section 74 of the CGST Act, 2017. Based on the assessment of facts and prevailing law, the Company is of the view that the aforesaid order is arbitrary and unjustified. The Company will file necessary appeal with the appellate authority in this regard.
There is no material impact on financials, operations or other activities of the Company. Nature and details of the action(s) taken, initiated or order(s) passed: Order-in-Original dated 14 November 2024 passed u/s 74 of Central Goods and Services Tax Act, 2017 covering financial year 2017-18 to financial year 2021-22.No tax and interest is being demanded in the said order. However, penalty of INR 29,070,363 is being imposed.
Order dated November 14, 2024 received on 22 November, 2024. Details of the violation(s)/contravention(s) committed or alleged to be committed: The GST Authority has passed the Order, pursuant to the enquiry carried out in November 2021, on the contention that the Company has claimed inadmissible Input Tax Credit (ITC) on certain items and services which were ineligible under Section 17(5) of the CGST Act, 2017. The company has already paid the tax amount along with interest during the course of proceedings on 10 January 2022, with the request to closure of proceedings.
Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: Based on the assessment of facts and prevailing law, the Company is of the view that the order issued is arbitrary, unjustified and without any merits as tax and interest were already paid by the Company, and the order was issued after a prolonged period of 3 years. The Company will file the necessary appeal with the appellate authority to contest the penalty order as the Company is of the view that the case should not be adjudicated under section 74. There is no material impact on the company's financials, operations, or other activities.
