Appellate Tribunal stays recovery of Rs. 85.49 Cr from BASF India
Chemical

Appellate Tribunal stays recovery of Rs. 85.49 Cr from BASF India

The company based on the legal assessment, does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter.

  • By Pravin Prashant | September 08, 2020
The Karnataka Appellate Tribunal (vide its order dated 2nd September, 2020) has granted stay on recovery of demand aggregating to Rs. 85.49 crores (including interest & penalty) pertaining to the period 2012-2013 with respect to BASF India Limited. 
 
BASF India based on the legal assessment, does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter.
 
The Commercial Tax Department, Karnataka had served demand notice aggregating to Rs. 666.94 crore (including interest and penalty) for the period 2006-2007 to 2015-2016 by treating the stock transfers of BASF India's Mangalore Plant as interstate sales to dealers and its subsequent stay by Karnataka Appellate Tribunal on recovery of demand for the periods 2006-2007 to 2010-2011 and 2014-2015.
 
BASF has successfully partnered India’s progress for more than 125 years, with all global businesses maintaining a presence in India today except for oil & gas. As of the end of 2015, BASF in India had 2,236 employees at nine production sites and eight sales offices, as well as two R&D centers, located in Mumbai and Mangalore. 

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