By: ICN Bureau
Last updated : October 15, 2021 11:23 am
The Karnataka Appellate Tribunal has granted stay on recovery of tax demand aggregating to Rs. 40.65 crores pertaining to the tax period 2016-2017.
BASF India Limited had earlier announced the receipt of demand notices from the Commercial Tax Department, Karnataka aggregating to Rs. 744.67 crores (including interest and penalty) for the tax periods 2006-2007 to 2016-2017 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 tax demand for the periods 2006-2007 to 2010-2011, 2012-2013, 2013-2014, 2014-2015 and 2015-2016.
In this connection, the Karnataka Appellate Tribunal vide its order dated 12th October 2021 (received by us on 13th October 2021) has granted stay on recovery of tax demand aggregating to Rs. 40.65 crores pertaining to the tax period 2016-2017.
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.