BASF India granted stay on recovery of demand aggregating to Rs24.74cr

The company had received demand notices from the Commercial Tax Department, Karnataka aggregating to Rs670cr.

Oct 26, 2020 01:10 IST India Infoline News Service

BASF India
BASF India Limited informed the exchanges Friday that Karnataka Appellate Tribunal has granted stay on recovery of demand aggregating to Rs24.74cr pertaining to the period 2015-2016.

The company had received demand notices from the Commercial Tax Department, Karnataka aggregating to Rs670cr (including interest and penalty) for the periods 2006-2007 to 2015-2016 by treating the stock transfers of the company’s Mangalore Plant as interstate sales to dealers and its subsequent stay by Karnataka Appellate Tribunal on recovery of demand for the periods 2006-2007 to 2010-2011, 2012-2013, 2013-2014 and 2014-2015.

“The Hon’ble Karnataka Appellate Tribunal vide its order dated October 22, 2020 (received by us on October 23, 2020) has granted stay on recovery of demand aggregating to Rs24.74cr pertaining to the period 2015-2016. The company, based on the legal assessment, does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter,” the company said in a regulatory filing on Friday.

BASF India Ltd is trading at Rs1,387.75 down by Rs15.7 or 1.12% around 1.33 pm from its previous closing of Rs1,403.45 on the BSE.

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