Mumbai, January 31, 2025 – Flair Writing Industries Limited (FWIL) has announced via an exchange filing that it has received an Order-In-Original under Section 73 of the CGST Act, 2017 from the Office of the Assistant Commissioner of CGST & C. Ex, Division-X, Mumbai East.
Key Details of the Order
- Authority Issuing the Order: Assistant Commissioner, CGST & C. Ex, Division-X, Mumbai East.
- Nature of the Action: Order-In-Original under Section 73 of the CGST Act, 2017.
- Period Concerned: Financial Year 2020-21.
- Date of Receipt: January 31, 2025.
- Violation Cited: Disallowance of Input Tax Credit (ITC)amounting to:
- ₹ 54,26,015/-, comprising:
- ₹ 49,32,741/- in tax liability.
- ₹ 4,93,274/- as penalty.
- ₹ 54,26,015/-, comprising:
Financial & Operational Impact
The company has stated that it will challenge the order based on strong merits by filing necessary replies and submissions before the relevant authorities. No material impact is expected on Flair Writing Industries' financials, operations, or business activities due to this development. The financial impact, if any, will be limited to the final tax liability determined after the appeal process, including any interest or penalties.Company’s Response
Flair Writing Industries Limited has reaffirmed its commitment to compliance and regulatory transparency. The company’s Company Secretary & Compliance Officer, Mr. Vishal Kishor Chanda, signed off on the official disclosure to the stock exchanges.Outlook for Investors
While tax-related notices can introduce some uncertainties, Flair Writing Industries' proactive stance in challenging the order suggests that investors should monitor developments without immediate concern. Further updates on this case will likely follow based on the company’s engagement with the regulatory authorities.Stock Performance Watch: Given the disclosure, investors may observe short-term reactions in FWIL’s stock price. However, as per the company's statement, the impact is not expected to be material.