New Delhi: Bajaj Auto Ltd on Friday said it has been imposed penalty and interest of over Rs 10 crore by the tax authority in a matter related to differential GST on classification of instruments cluster and will legally challenge it.
The Joint Commissioner, Central GST, Pune — II Commissionerate passed an order confirming classification of instruments cluster under HSN code 8708/8714 for the period July 2017 to March 2022, as against classification of 9029 adopted by the company, Bajaj Auto said in a regulatory filing.
“The order has confirmed demand of differential GST amounting to Rs 10,03,91,402. The Joint Commissioner has appropriated and adjusted the said demand against the tax deposited by the company,” it said.
Bajaj Auto further said, “the order has also confirmed applicable interest and equivalent penalty of Rs 10,03,91,402 and general penalty of Rs 25,000, resulting in an overall penalty of Rs 10,04,16,402.”
The company said it “believes that the order passed by the Joint Commissioner lacks merit and beyond jurisdiction. Further, the order passed by the Joint Commissioner is disregarding the writ petition filed by the company against the said show cause notice, which is pending before the Bombay High Court.”
Asserting that it has a very strong case, Bajaj Auto said “appropriate legal action would be initiated” against the said order, which does not have any major financial implications on it.