Gravita India Ltd receives demand of Rs. 70.10 crores

Gravita India Limited has received a demand through adjudication order from the Commissioner of Customs (Preventive), Jodhpur amounting to Rs. 70.10 Cr. (excluding interest, fine and penalty) for not meeting pre-import condition during the period from October 2017 to January 2019 in respect of certain imports under advance authorization scheme of the Director General of Foreign Trade.vvThe issue has been taken up Customs deptt. against a number of exporters across the country based on their interpretation of pre import condition of non-fulfillment under custom notification no. 79/2017-customs dated 13th Oct, 2017.

The matter is an all India issue and various exporters have received an order of the same kind, therefore all those affected have exercised their right to appeal against this action of the deptt. and as a result of which the matter was escalated to the Hon'ble Supreme Court of India who in return had issued directions to the CBIC to re-assess the import bills of entry and allow credit to the importers.

It implies that the demand will be revenue neutral activity. It will not have any financial implication on the company.

However, according to the Company's point of view, the order issued is beyond the limitation period and hence, the demand is not enforceable.

Also, in addition to it, the company has been advised by its legal and tax counsel that it has a good case on merit and limitation and the Company will be taking appropriate steps in due course to contest the matter before appropriate appellate authority.

Shares of Gravita India Limited was last trading in BSE at Rs. 658.60 as compared to the previous close of Rs. 655.95. The total number of shares traded during the day was 8292 in over 559 trades.

The stock hit an intraday high of Rs. 672.00 and intraday low of 657.10. The net turnover during the day was Rs. 5502890.00.

Source : Equity Bulls

Keywords

GravitaIndia INE024L01027 Demand Customs