Bombay High Court quashes ₹2,237 crore GST demand against Larsen & Toubro
Aug 20, 2024
Subsequently, the company received the High Court's order on August 19, granting approval to the Writ petition filed by the company and nullifying the show cause notice issued by the GST authorities, according to the filing.
Larsen & Toubro announced on Tuesday that the Bombay High Court has nullified a GST demand of ₹2,237 crore imposed on the company.
"The Company had filed a Writ Petition in the Bombay High Court against the show cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai towards Service tax demand of ₹2,237 crore, on an erstwhile subsidiary, in respect of Tax already paid by the Company with respect to certain transactions undertaken post demerger," L&T said in an exchange filing.
Subsequently, the company received the High Court's order on August 19, granting approval to the Writ petition filed by the company and nullifying the show cause notice issued by the GST authorities, according to the filing.
“We wish to inform that the Company on August 19, 2024, has received an order of the Hon’ble Bombay High Court, allowing the Writ petition filed by the Company and has quashed & set aside the show cause notice issued by the GST authorities,” the company added.
Last month, Larsen & Toubro reported a 12 percent increase in net profit for the first quarter of FY25, which was slightly below expectations, as the company's revenue from operations grew by 15 percent in the April-June period.
Driven by higher revenues, L&T's net profit rose to ₹2,786 crore in the three months ending June 30, up from ₹2,493 crore a year earlier, though slightly below the estimated ₹2,876 crore. Its revenues increased by 15 percent to ₹55,120 crore, surpassing the forecast of ₹52,518 crore.
“We have achieved steady growth across all financial parameters in Q1 FY 2024-25, despite the geopolitical situation across the globe. Amidst various transformational shifts happening worldwide, we are well-positioned to grasp these opportunities with our expertise in our traditional P&M business and technology driven new-age businesses. The Financial Services portfolio has achieved a remarkable transformation into Retail Finance with improved profitability. To enhance our presence in the Semiconductor sector, we have recently entered into a share purchase agreement with SiliConch Systems, a Bengaluru based chip design company," said S.N. Subrahmanyan, Chairman and Managing Director.
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