Mumbai, Sep 28 — Health and hygiene products maker Eureka Forbes Limited on Monday said it has received a show-cause notice from the Uttar Pradesh GST department proposing a tax demand of Rs 273.40 crore for the financial year 2022-23.
The notice, issued by the Deputy Commissioner, State Tax, Sector-1, Lucknow, under Section 73(1) of the Uttar Pradesh Goods and Services Tax Act, 2017, alleges a GST liability of Rs 149.21 crore.
The proposed demand also includes interest of Rs 109.27 crore and a penalty of Rs 14.92 crore, taking the total amount to Rs 273.40 crore.
In a regulatory filing, Eureka Forbes said the demand appears to have been calculated using, among other factors, pan-India financial data from its audited FY23 financial statements without establishing the corresponding transaction-level tax liability attributable to its Uttar Pradesh GST registration.
The company maintained that the show-cause notice lacks merit and is not sustainable on factual, legal or procedural grounds. It said it intends to contest the notice comprehensively and submit its response within the prescribed timelines.
"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," it said in its exchange filing.
"The company does not envisage any material impact on the financials, operations or other activities of the company arising from this SCN," it added.
Eureka Forbes further stated that it does not expect any material impact on its financial position, business operations or other activities as a result of the notice.
According to the company, the show-cause notice was received after office hours on September 25. The disclosure was made on September 28, the first working day following its receipt.
Shares of Eureka Forbes ended the day at Rs 361.90 on the BSE, down Rs 8.65, or 2.33 per cent, from the previous close.