Mumbai, February 1, 2025 – Bansal Wire Industries Limited (NSE: BANSALWIRE) has disclosed that its wholly owned subsidiary,
Bansal Steel & Power Limited (BSPL), has received a
Demand Order from the Deputy Excise and Taxation Commissioner, Jhajjar (Bahadurgarh), Haryana, under
Section 74 of the GST Act, 2017, for the
financial year 2017-18.
Key Financial Highlights of the GST Demand Order:
| Component | Amount (₹) |
|---|
| Tax Liability | 57,77,896 |
| Penalty | 50,99,895 |
| Interest | 89,94,666 |
| Total | 1,98,72,457 |
The demand order, received on
January 31, 2025, pertains to tax liabilities before BSPL was acquired by Bansal Wire through
Corporate Insolvency Resolution Process (CIRP) via NCLT order on December 4, 2018.
Company’s Response and Legal Position
Bansal Wire has clarified that a
petition has been filed seeking the quashing of all dues that arose before the NCLT order. The company maintains that
neither it nor its subsidiary or promoters will bear any obligation regarding these dues.
Impact on Financials
Bansal Wire has stated that
no material financial impact is expected from the demand order. The company cited
Section 31 read with Section 238 of the IBBI Act, which overrides any inconsistencies in other laws, reinforcing its position that the demand is not enforceable against them. The company plans to
file an appropriate response within the statutory timelines.
Conclusion
While the
₹1.98 crore demand order may raise concerns, Bansal Wire remains confident of a
favorable legal outcome and has assured investors that
there will be no financial liability on the company. The stock market reaction to this update remains to be seen.