Tata Steel Ltd. has received a demand and show-cause notice dated 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 Tuesday. 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 Wednesday.
In the notice, the company was asked to show cause why interest at the appropriate rate on the amount should not be demanded and penalty on that amount should not be imposed, the filing said.
Tata Steel said the notice has "no merits and the company shall make its submissions before the adjudicating authority within the given timelines".
There is no impact on financial, operational or other activities of the company arising from the notice, it said.
Shares of Tata Steel's closed 1.03% higher at Rs 156.39 apiece on the NSE, compared to a 0.8% rise in the benchmark Nifty. The stock has fallen 10.98% in the last 12 months and rose 13.29% on a year-to-date basis.
Out of 33 analysts tracking the company, 21 have a 'buy' rating on the stock, seven recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 4.1%.
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