Mumbai, February 21, 2025 – DEN Networks Limited (NSE: DEN), a prominent cable distribution company, has disclosed a penalty order amounting to ₹4.75 crore imposed by the Joint Commissioner, CGST and Central Excise Commissionerate, Lucknow. The penalty, issued under Section 74 of the Central Goods and Services Tax Act, 2017, and the Uttar Pradesh Goods and Services Tax Act, 2017, pertains to alleged discrepancies in the discharge of GST obligations for FY 2017-18.
Key Developments:
- Penalty Amount: ₹4,75,00,098/-
- Reason: Disallowance of deferred revenue adjustment and alleged lower GST discharge.
- Regulatory Authority: Joint Commissioner, CGST and Central Excise, Lucknow.
- Order Date: January 31, 2025.
- Company's Stance: DEN Networks considers the order erroneous and intends to file an appeal.
Financial & Operational Impact:
The company has clarified that while the financial implication is limited to the penalty amount, there is no material impact on its operations or ongoing business activities.Next Steps:
DEN Networks is set to challenge the order through an appeal, asserting that the penalty is unjustified. The company remains focused on ensuring compliance with tax regulations while safeguarding its financial interests.Investor Outlook:
While the penalty adds a short-term financial liability, the absence of operational disruptions suggests a neutral to minimal impact on DEN Networks' overall business outlook. Investors may monitor legal proceedings and the company’s ability to overturn the penalty in an appeal.About DEN Networks Limited
DEN Networks Limited is one of India’s leading cable TV distribution companies, offering digital cable services and broadband solutions. The company continues to expand its digital footprint across multiple regions in India.
Stock Market Impact: Investors and analysts will closely watch the appeal process and any subsequent relief granted by higher authorities. The development underscores the importance of GST compliance in the media distribution sector.