This case was an overhang since long time. There will be no material impact on the financials. It would have been better if they just pay up instead of appealing but the response seems to be that some payment has already been done.
Management response:
“The Company will challenge the Order and file an appeal before CESTAT, Kolkata within due course.
So far as the penalty amounting to Rs. 6,88,52,876/- under section 11AC(1)(c ) of CEA 1944 is concerned, since the duty and interest was paid prior to issuance of Show Cause Notice, which was duly acknowledged in the Order in Original, penalty under any provision of excise is not applicable.
With regard to the duty demand for reversal of credit, the entire demand is barred by limitation of time as well as weak on merits as well and hence there is no suppression, mis statement or intent to evade payment of duty and the entire demand will be dropped at the subsequent stage.
Further, this case from the inception was duly disclosed in DRHP (Page No 33 to 34 and 343 to 344) and in RHP (Page No 34-35 and 367) as well and the same was evaluated by statutory auditor for contingent liability purposes from time to time.
Further, there is no impact on the financial operation or other activities of the Company due to this Order.“
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