Leading car manufacturer Maruti Suzuki has been sent a show cause notice by the GST Authority proposing to demand Rs 139.3 crore as tax inclusive of interest and penalty.
The notice pertains to the matter of tax liability under reverse charge basis on certain services for the period of July 2017 to August, 2022, the company said in a regulatory filing. The company said it will file a reply to the show cause notice before the Adjudicating Authority.
Maruti Suzuki claimed that it has received a favourable order from the Punjab and Haryana High Court wherein appeals filed by the Central Excise Department for the period June 2006 to March 2011 were dismissed in an earlier Rs 57.2 crore case.
The company further stated in the filing that the Central Excise Department had filed appeals before the high court against an earlier tribunal order of August 2016, which was passed in favour of the company in which input service credit on certain services was allowed to it and the penalty imposed was dropped.