The Bombay High Court has quashed a Rs 2,237-crore GST demand raised against the company, Larsen & Toubro said.
A Writ Petition by the Company was filed on August 14, 2023, in the Bombay High Court against the Show Cause Notice (SCN) issued by the Principal Commissioner of GST and Service Tax, Mumbai towards Service tax demand of Rs 2,237 crore, on an erstwhile subsidiary, concerning the Tax already paid by the Company for certain transactions undertaken post demerger, L&T said in an exchange filing.
After that, the company received the order of the HC permitting the writ petition filed via the company and quashed and set aside the SCN that the GST authorities issued, as per the filing.
The Director General of GST Investigation(DGGI), Mumbai in 2018 has issued one SCN on October 18, 2018, against L&T Finance Ltd, alleging that additional interest, penal interest, and default interest assessed between 2013-14 to 2016-17 to customers are obligated to service tax and goods and services tax (GST).
The Principal Commissioner of CGST, Mumbai 2020 confirmed the SCN against L&T Finance in February 2020 following which L&T Finance filed a plea against the said order before the Customs Excise and Service Tax Appellate Tribunal(CESTAT).
A principal amount of Rs 39.86 crore as additional GST tax for 2013-14, Rs 70.01 crore for 2014-25, Rs 105.02 crore for 2015-16, Rs 143.68 crore for 2016-17 and Rs 36.02 crore for Q1FY18 was asked to pay the L&T Finance.
In the former month, Larsen & Toubro posted a 12 per cent rise in net profit in the first quarter of FY25, which is less than the estimates, as the revenue of the company from operations surged to 15 per cent in the April-June quarter.
Read Also: GST ITC in GSTR 2A Higher Than Reflected in GSTR 3B, Madras HC Gives Relief to L&T
The company’s net profit climbed to Rs 2,786 crore in the three months ended June 30, from Rs 2,493 crore a previous year, encouraged by the increase in the revenue, however, it is somewhat less than the estimation of Rs 2,876 crore. The revenue has surged 15% to Rs 55,120 crore which is more than the estimates of Rs 52,518 crore.
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