Mumbai — Health and hygiene products maker Eureka Forbes Limited said Monday it has received a show-cause notice from the Uttar Pradesh GST department proposing a tax demand of Rs 273.40 crore for fiscal year 2022-23.
The notice was issued by the Deputy Commissioner, State Tax, Sector-1, Lucknow, under Section 73(1) of the Uttar Pradesh Goods and Services Tax Act, 2017.
According to the company, the notice alleges a GST liability of Rs 149.21 crore, along with Rs 109.27 crore in interest and a penalty of Rs 14.92 crore.
In a regulatory filing, Eureka Forbes said the proposed demand appears to have been calculated using, among other factors, its pan-India financial data from audited FY23 financial statements without establishing a corresponding transaction-level tax liability linked specifically to its Uttar Pradesh GST registration.
The company said it believes the notice lacks merit and is not sustainable on factual, legal or procedural grounds.
“The company is of the considered view that the SCN is devoid of merits, not sustainable on facts or in law or in procedure and intends to contest the same comprehensively within the prescribed timelines,” Eureka Forbes said in its exchange filing.
The company also said it does not expect the notice to have a material impact on its finances, operations or other business activities.
“The company does not envisage any material impact on the financials, operations or other activities of the company arising from this SCN,” it said.
Eureka Forbes said it received the notice after office hours on Sept. 25 and made the disclosure on Sept. 28, the first working day following its receipt.
Shares of Eureka Forbes closed at Rs 361.90 on the BSE, down Rs 8.65, or 2.33%, from the previous close. (Source: IANS)
