Appellate tribunal stays recovery of Rs.38.86 crores from BASF India
By: ICN Bureau
Last updated : October 21, 2020 7:29 am
Karnataka Appellate Tribunal vide its order dated 16th October, 2020 has granted stay on recovery of demand aggregating to Rs.38.86 crores pertaining to the period 2013-2014.
BASF India Ltd had earlier announced regarding the receipt of demand notices from the commercial tax department, Karnataka aggregating to Rs. 670 crores (including interest and penalty) for the periods 2006-2007 to 2015-2016 by treating the stock transfers of the company'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, 2012-2013 and 2014-2015.
In this connection, the Karnataka Appellate Tribunal vide its order dated 16th October, 2020 has granted stay on recovery of demand aggregating to Rs.38.86 crores pertaining to the period 2013-2014.
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, stated BASF India in its filing to exchanges.
Earlier, the Appellate Tribunal vide its order dated 2nd September, 2020 has already 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.