R R Kabel: CGST Dept Appeals Refund Order Valued at ₹36.9 Crore
R R Kabel Limited disclosed that the CGST Department has filed appeals against two favorable orders concerning refund disputes. The appeals challenge refund claims totaling ₹36.90 crore for periods between October 2018 and September 2021, along with penalties. The company expects no material financial impact.
The company explicitly stated that it does not expect any material financial implications from these appeals, indicating a low potential impact on its financial performance.
The company is disclosing litigation updates where the tax department is appealing a favorable order. While the company does not expect material financial implications, the ongoing litigation introduces some uncertainty, thus warranting a neutral sentiment.
R R Kabel Limited has disclosed that the Principal Commissioner/Commissioner, CGST & CE, Vadodara-I Commissionerate has filed appeals against two favorable Order-In-Appeals issued on 26 September 2024. These appeals challenge the company's refund claims, which were granted by the appellate authority.
The dispute centers on a refund of ₹36,90,78,517/-, comprising ₹5,16,77,444/- for the period October 2018 to November 2018 and ₹31,74,01,073/- for April 2019 to September 2021. The Department contends that these refunds were erroneously allowed under Rule 89(4) instead of Rule 89(4B) of the CGST Act, 2017, and has also appealed against applicable penalties of ₹51,67,744/- and ₹3,17,40,107/-, respectively.
The company maintains that the refunds were correctly claimed under Section 54(3) read with Rule 89(4). Despite the appeals filed by the Department, R R Kabel Limited does not anticipate any material financial implications arising from these proceedings.
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R R Kabel 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 low impact, the band that almost never moves a portfolio on its own.
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