Tata Steel Ltd. has received a demand letter for a compensation of Rs 1,903 crore from the Jajpur deputy director of mines over an alleged shortfall in supply of minerals from the Sukinda Chromite block.
Based on the revised assessment of the shortfall, the dispatch of minerals has fallen short for the fourth year in terms of Mine Development and Production Agreement., according to an exchange filing on Friday.
This allegedly violates rule 12A of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016, and consequent appropriation of performance security. The revision in assessment is based on declaration of average sale price notified by the Indian Bureau of Mines, as per the filing.
"The alleged shortfall in mineral dispatch by the Company as per the aforementioned Mine Development and Production Agreement for Sukinda Chromite Block has resulted in an aggregate demand of Rs 19,02,72,53,760/- including sale value of shortfall quantity and appropriation of performance security," the filing stated.
However, the company's management disagrees with the allegations and "believes that the State's demands lack justification and substantive basis. Accordingly, the Company will pursue suitable legal remedies before the appropriate judicial or quasi-judicial forum(s)", the filing added.
In June, Tata Steel had received a demand and show-cause notice from the Office of the Jamshedpur Central Goods and Services Tax & Central Excise commissioner in connection with irregular availing of input tax credit worth Rs 890.5 crore.
The notice is dated June 13 and was received on June 24. The firm is required to show cause before the additional or joint commissioner of CGST within 30 days of its receipt for the irregular availing of ITC from fiscal 2018-19 through fiscal 2020-21, according to an exchange filing on June 25.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
