Big Trouble for Bajaj Auto : Bajaj Auto Ltd on Friday said that the tax authority has levied penalty and interest of over Rs 10 crore against it on account of differential GST on its classification of instruments cluster and that it will legally challenge it.The order confirmed by the Joint Commissioner,
Central GST, Pune — II Commissionerate relates to classification of instruments cluster under HSN code 8708/8714 for the period July 2017 to March 2022, against the classification of 9029 adopted by the company, Bajaj Auto said in a regulatory filing.
“The order has confirmed the demand of differential GST of Rs 10,03,91,402. The Joint Commissioner has appropriated and adjusted the said demand against tax deposited by the company,” it said.
“The order has also confirmed applicable interest and equivalent penalty of Rs 10,03,91,402 and general penalty of Rs 25,000, resulting in an overall penalty of Rs 10,04,16,402,” Bajaj Auto added.
The company “believes that the order passed by the Joint Commissioner is devoid of merits and beyond jurisdiction,” it said. The order spoken of by the Joint Commissioner is also ignoring the writ petition preferred by the company against the aforementioned show cause notice which is pending before the Bombay High Court.”
Bajaj Auto said it has a very strong case and “appropriate legal action would be initiated” against the said order, which has no larger financial implications on it.
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