New Delhi: GS Intelligence has sent a show cause notice to Patanjali Foods, in which the company has been asked why input tax credit of Rs 27.46 crore should not be recovered from it.
Yoga guru Ramdev-led Patanjali Ayurved Group company, which is primarily in the edible oil business, has received a notice from the Directorate General of GS Intelligence, Chandigarh Zonal Unit, according to a regulatory filing made by the company on April 26.
“The company has received a show cause notice… The company, its officers and authorized signatories have been asked to show cause as to why the input tax credit amount of Rs 27,46,14,343 (including interest) should not be recovered. The company said, "Why shouldn't the fine be imposed..."
The department has cited Section 74 of the Central Goods and Services Act, 2017 read with Section 20 of the Integrated Goods and Services Tax (IGST Act, 2017) and other applicable provisions of the Uttarakhand State Goods and Services Act, 2017. Right now the authority has just issued a show cause notice and the company will take everything
Take necessary action to defend your case before the authority,” Patanjali Foods said.
"...the expected financial implications cannot be determined until the proceedings are completed," the company said.,
Last week, Patanjali Foods had said it would evaluate a proposal to acquire the non-food business of promoter group Patanjali Ayurveda.
In a regulatory filing, Patanjali Foods said its board has discussed the preliminary proposal received from Patanjali Ayurved Ltd for the sale of its non-food business venture to the company.
Incorporated in 1986, Patanjali Foods Limited, formerly known as Ruchi Soya Industries Limited, is a leading FMCG player. The company operates in the edible oil, food & FMCG and wind power generation sectors through the brands Patanjali, Ruchi Gold, Nutrela etc.
Patanjali Ayurveda had acquired Ruchi Soya through the insolvency process and the company was later renamed as Patanjali Foods Limited.
Yoga guru Ramdev-led Patanjali Ayurved Group company, which is primarily in the edible oil business, has received a notice from the Directorate General of GS Intelligence, Chandigarh Zonal Unit, according to a regulatory filing made by the company on April 26.
“The company has received a show cause notice… The company, its officers and authorized signatories have been asked to show cause as to why the input tax credit amount of Rs 27,46,14,343 (including interest) should not be recovered. The company said, "Why shouldn't the fine be imposed..."
The department has cited Section 74 of the Central Goods and Services Act, 2017 read with Section 20 of the Integrated Goods and Services Tax (IGST Act, 2017) and other applicable provisions of the Uttarakhand State Goods and Services Act, 2017. Right now the authority has just issued a show cause notice and the company will take everything
Take necessary action to defend your case before the authority,” Patanjali Foods said.
"...the expected financial implications cannot be determined until the proceedings are completed," the company said.,
Last week, Patanjali Foods had said it would evaluate a proposal to acquire the non-food business of promoter group Patanjali Ayurveda.
In a regulatory filing, Patanjali Foods said its board has discussed the preliminary proposal received from Patanjali Ayurved Ltd for the sale of its non-food business venture to the company.
Incorporated in 1986, Patanjali Foods Limited, formerly known as Ruchi Soya Industries Limited, is a leading FMCG player. The company operates in the edible oil, food & FMCG and wind power generation sectors through the brands Patanjali, Ruchi Gold, Nutrela etc.
Patanjali Ayurveda had acquired Ruchi Soya through the insolvency process and the company was later renamed as Patanjali Foods Limited.
