Crompton Greaves Receives Partial Relief in SGST Appeal, Potential Impact ₹5.79 Crore
Crompton Greaves received a partially favorable order from the Joint Commissioner of State Tax (Appeal–IV) concerning a demand for FY 2019-20. The potential impact is ₹5.79 crore. The company plans to appeal further, expecting a favorable outcome.
The potential monetary impact of ₹5.79 crore, although stated as not material, is significant enough to warrant a medium impact assessment. The ongoing litigation also adds to the uncertainty.
While the company received partial relief, the overall situation is still under litigation as they plan to appeal further. The potential financial impact, though stated as not material, is significant.
Crompton Greaves Consumer Electricals Limited has received an order from the Joint Commissioner of State Tax (Appeal–IV), Mumbai, partially allowing a demand order previously issued by the Deputy Commissioner of State Tax for the financial year 2019-20. The original demand was raised pursuant to an assessment order dated August 28, 2024.
The company had initially intimated the exchange on August 29, 2024, regarding the receipt of the order under section 73 of the SGST Act, 2017, and its intention to file an appeal. The current order from the appellate authority partially grants the relief sought.
The demand was raised on account of disallowance of Input Tax Credit (ITC) due to mismatches with GSTR 2A, tax imposed under reverse charge mechanism on extra invoices of service providers appearing only in GSTR 2A, and ITC reversal on exempted supply considering expenses as common in nature. The potential monetary impact of this order is ₹5,78,84,851, comprising tax of ₹2,80,31,405, interest of ₹2,70,50,306, and penalty of ₹28,03,141.
Despite the partial allowance, the company, based on the merits of the case, prevailing law, and consultant's advice, plans to appeal against this order further, in line with Section 112 of the SGST Act, 2017. The company reasonably expects a favorable order from the higher appellate authorities. The company has stated that there is no material impact on its financials, operations, or other activities.
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Crompton Greaves Consumer Electricals Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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