Kolkata, February 5, 2025 – Usha Martin Limited has received an order from the Commissioner of CGST & CX, Jamshedpur, imposing a penalty of ₹7,14,46,604 for alleged non-payment of service tax on royalty fees for the period from April 2016 to June 2017.
Key Details of the Order
Issuing Authority: Commissioner of CGST & CX, Jamshedpur
Penalty Amount: ₹7.14 crore
Legal Basis: Finance Act, 1994, and CGST Act, 2017
Date of Order: January 28, 2025
Date of Receipt: February 4, 2025, via email
Allegation: Non-payment of service tax on royalty fees
Company’s Response and Financial Impact
Usha Martin has strongly objected to the penalty and is in the process of filing an appeal with the appropriate appellate authorities. The company has stated that it does not foresee any financial, operational, or business impact from this order at present.
Outlook
While the company prepares its appeal, investors will be monitoring the situation for any potential implications. Further updates may follow as legal proceedings progress.
