“The company has received a demand notice from Commercial Tax Department, Karnataka for the period 2015-2016, aggregating to Rs46.01cr (including interest and penalty), by treating the stock transfers of the company’s Mangalore plant as interstate sales to dealers,” as per the filing.
The company had earlier informed about tax demand notices aggregating to Rs620.93cr (including interest and penalty) from Commercial Tax Department, Karnataka for the periods 2006-2007 to 2014-2015 by treating the stock transfers of the company’s Mangalore plant as interstate sales to dealers. Later, Karnataka Appellate Tribunal granted stay on recovery of demand for the periods 2006-2007 to 2010-2011 and 2014-2015.
Further, the company said it is in the process of filing its detailed reply/submission/appeals in response to the said notice.
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, it added.
Meanwhile, the stock ended at Rs1,221, down by Rs22.45 or 1.81% from its previous closing of Rs1,243.45 on the BSE.
The scrip opened at Rs1,256.70 and has touched a high and low of Rs1,258.85 and Rs1,212.10 respectively.