On Tuesday, August 20, Larsen & Toubro (L&T), a major in engineering and construction, announced that the Bombay High Court has issued a favorable ruling, overturning a show cause notice from the Principal Commissioner of GST and Service Tax in Mumbai. The notice had demanded Rs.2,237 crore in service tax.
According to a stock exchange filing, the company had submitted a Writ Petition to the Bombay High Court challenging a show cause notice from the Principal Commissioner of GST and Service Tax, Mumbai. The notice concerned a Rs.2,237 crore service tax demand related to an earlier subsidiary, for tax already paid by the company on transactions conducted after the demerger.
The demand pertained to transactions conducted by a former subsidiary of L&T, for which the company had already settled the necessary taxes after the demerger. The company filed a writ petition contesting the notice, asserting that the service tax had been properly paid and that the demand was unjustified.
On August 19, 2024, the High Court ruled in favor of L&T, dismissing the notice and relieving the company from the significant tax demand.
The company statement depicted, "We wish to inform you that on August 19, 2024, the Hon'ble Bombay High Court issued an order granting the Company’s Writ Petition and invalidating the show cause notice from the GST authorities."
Shares of Larsen & Toubro Ltd closed at Rs.3,574.20 on the BSE, an increase of Rs.17.85, or 0.50%.
Copyright © 2024 HomesIndiaMagazine. All Rights Reserved.
