Mahindra & Mahindra Ltd on Friday said it has been imposed a penalty of over Rs 14.3 lakh for incorrect input tax credit availed during the transition from the excise regime to the GST regime by erstwhile Mahindra Vehicle Manufacturers Ltd, which has since been merged into it.
In a regulatory filing, the company said, based on its assessment, prevailing law and the advice of the counsel, it is hopeful of a favourable outcome at the appellate level.
"The company has received an order from Joint Commissioner, CGST & Central Excise, Pune-I Commissionerate imposing a penalty of Rs 14,31,571 under applicable provisions of the CGST Act, 2017 in relation to erstwhile Mahindra Vehicle Manufacturers Ltd (MVML)," the filing said.
It further said, "The order has been passed on the basis that incorrect input tax credit (ITC) has been availed during the transition from excise regime to GST regime by MVML, and the authority has ordered for recovery of the same along with interest." The order dated July 20, 2023 was received by the company on August 17, 2023, it added.
"Based on the company's assessment, prevailing law and the advice of the counsel, the company is hopeful of a favourable outcome at the appellate level," M&M said, adding it does not reasonably expect the order to have any material financial impact on it.
