Kolkata, January 31, 2025 – Mallcom (India) Limited (BSE: 539400, NSE: MALLCOM) has disclosed that it has received an order from the Additional Commissioner, CGST & Central Excise, Dehradun, concerning the company's GST audit findings for the financial years 2017-18 and 2018-19.
Key Highlights of the Order
| Particulars | Details |
|---|---|
| Authority Issuing Order | Additional Commissioner, CGST & Central Excise, Dehradun |
| Nature of Order | GST audit findings for FY 2017-18 & 2018-19 |
| Tax Demand | ₹24,53,29,783 |
| Penalty Imposed | ₹24,53,29,783 |
| Total Financial Impact | ₹49.06 crore (including interest) |
| Violation Alleged | Wrong availment of ITC for stock transfers within inter-state units |
| Date of Order Receipt | January 29, 2025 |
Company’s Response and Financial Impact
The order raises a demand of ₹24.53 crore along with an equal penalty amount, citing the alleged wrongful availment of Input Tax Credit (ITC) for stock transfers across inter-state units. However, Mallcom (India) Ltd. has clarified that the original tax demand was already recovered in full on April 16, 2021. The company further stated that it is reviewing the order and does not foresee any material impact on its financials or operations. Mallcom intends to challenge the order at the appropriate legal forums.Strategic and Legal Outlook
While the company asserts that its financials remain unaffected, investors will be closely monitoring the legal proceedings and the potential implications on Mallcom’s compliance practices. The decision to contest the order could result in prolonged litigation, but given that the original demand has already been settled, the company may focus on reducing or eliminating the penalty amount.Mallcom (India) Ltd. has assured that it remains compliant with all statutory requirements and is taking appropriate measures to address the matter.