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| Exchange Disseminated Time | Blue Star Ltd has informed BSE that the Company has received an order from the Principal Commissioner of Service Tax - 1, Commissionerate, Kolkata holding that there has been alleged short payment of service tax amounting to around Rs. 67.86 crores during the period 2007-08 to 2011-12 in their Kolkata location on the basis of purported examination of the company’s records etc. and comparing it with the Service Tax Returns filed by the said location during the said period. The Commissioner has also imposed penalty of Rs. 67.86 crores equal to the tax demand under Sec. 78 of the Finance Act, 1994 apart from interest (not quantified in the order) to be paid in terms of Sec. 75 of the Finance Act, 1994 on the tax demanded.
The order is a complete departure from a ruling by the competent authority in an identical matter at another jurisdiction, in which after examination of the Company’s similar records, the demand notice raised by the Service Tax department was quashed.
Based on the advice received from its tax advisors, the Company strongly believes that the said order apart from being patently erroneous, has been passed without appropriately considering the submissions made by the Company, is based on incorrect presumptions and hence is untenable.
The Company will challenge the said order before the appropriate forum in accordance with law and is confident about a positive outcome.
This disclosure is issued in terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, without prejudice to the rights and contentions of the Company before any regulatory authority or Tribunal or a Court. |
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