Usha Martin Ltd. Receives ₹7.14 Crore Penalty from CGST & CX Commissioner

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.