Date: February 28, 2025
Stock Symbol: NSE – POWERMECH | BSE – 539302
Power Mech Projects Limited has disclosed the receipt of demand orders from the Goods and Services Tax (GST) authorities under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided details regarding the penalty orders in connection with audit proceedings related to input tax credit (ITC) claims for the financial year 2020-21.
Key Details of the GST Demand Orders
| Sr. No. | Particulars | Details |
|---|---|---|
| 1 | Name of the listed company | Power Mech Projects Limited |
| 2 | Type of communication received | Order u/s 73 of CGST/RGST Act, 2017 & Order u/s 73 of CGST/UPGST Act, 2017 (Form GST DRC-07) |
| 3 | Date of receipt | February 27, 2025 (5:46 PM IST & 8:40 PM IST) |
| 4 | Issuing Authority | Deputy Commissioner, Business Audit Wing-VI, Jaipur, Rajasthan & Joint Commissioner, CGST, Noida, Uttar Pradesh |
| 5 | Reason for demand order | Disputed ITC claims due to vendor default (non-filing of returns, vendor registration cancellations, and disallowed credit notes) |
| 6 | Period under scrutiny | FY 2020-21 (April 1, 2020 – March 31, 2021) |
| 7 | Financial Impact | No material impact on the company’s financials or operations |
| 8 | Demand Amount | ₹1,51,43,063/- (Jaipur Order) & ₹3,24,10,185/- (Noida Order) |
| 9 | Penalty Imposed | ₹17,17,447/- (Jaipur Order) & ₹29,46,381/- (Noida Order) |
| 10 | Company’s Response | The company believes the demand is not maintainable and is considering legal recourse to challenge the orders |
Company's Position
Power Mech Projects Limited has stated that the orders pertain to discrepancies in ITC claims due to vendor defaults and has clarified that there will be no financial or operational impact on the company. The company is currently evaluating its legal options and may challenge the orders at an appropriate forum.Investors and stakeholders are advised to stay informed about any future developments regarding this matter.