A Show Cause Cum Demand Notice by the Commissioner of GST Intelligence in Gautam Budh Nagar, Greater Noida, has been served to Sheela Foam Ltd, the renowned manufacturer brand of the popular Sleepwell mattress brand, on Wednesday (October 4), the company revealed that.
On October 4, 2023, a notice was issued under Section 16 of the CGST Act, 2017, claiming a substantial tax liability of Rs. 20.26 crore, along with an equivalent penalty and applicable interest on the same amount.
The Show Cause Cum Demand Notice mainly revolves around the alleged incorrect utilization of transitional input credit and other improper use of input tax credit pertaining to the Goods and Services Tax (GST). Sheela Foam is diligently preparing to submit a formal response to this notice within the given timelines.
The notice requires the company to justify why the GST amounting to Rs. 20.26 crore should not be demanded and recovered under GST Section 16 of the CGST Act, 2017 along with the imposition of a penalty totalling Rs. 20.26 crore, as well as the application of interest on the said demand.
Sheela Foam has promptly sought the assistance of its tax advisors to deal with this issue, and based on their guidance, the company is meticulously preparing a comprehensive response in adherence to the prescribed timelines.
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