A show cause notice has been issued to Patanjali Foods from the Directorate General of GST Intelligence over a Rs 27.5 crore tax claim.
More Trouble For Patanjali: Patanjali Foods has faced another jolt as the company on Friday received a show cause notice from the Directorate General of GST Intelligence (Chandigarh) in connection to Rs 27.5 crore tax claim. The authority has issued a warning to the company regarding input tax and may levy a penalty on it under the CGST Act.
“A Show Cause Notice is received by the Company from the Directorate General of GST Intelligence, Chandigarh Zonal Unit, requiring the Company, its Officers and authorised signatories to show cause as to why input tax credit amounting to Rs 27,46,14,343 should not be recovered (along with interest), and why penalty should not be imposed under Section 74 and other applicable provisions of the CGST Act 2017/Uttarakhand SGST Act, 2017 read with section 20 of IGST Act 2017,” Patanjali said in an exchange filing.
Now, The FMCG company will be defending itself in front of the Directorate General of GST Intelligence.
“As of now the authority has only issued a show cause notice and the Company will be taking all necessary action to defend its case before the authority, hence, expected financial implications cannot be determined till the completion of the proceedings,” the filing said.
Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) is one of India’s top FMCG players. The company operates in edible oils, food and FMCG and wind power generation segments via a bouquet of brands like Patanjali, Ruchi Gold, Nutrela.
Recently, Yoga guru Baba Ramdev apologised to the Top Court for publishing misleading advertisements and making comments against allopathic medicines, assuring he will “remain conscious about it in future”. Co-founder of Patanjali Ayurved Ltd., Ramdev, tendered unconditional apology “for the mistakes”, adding that “What we did at the time was not correct. We will be conscious about it in the future.”
Patanjali’s Managing Director Acharya Balkrishna also apologised to the court, stating that their conduct was not deliberate.