UltraTech Cement Receives Penalty Order Of Rs 96 Lakh From Bhopal GST Authority
The company has stated that it is reviewing the order and will decide on further course of action.
UltraTech Cement Ltd. on Wednesday said that it has received a GST order of a little over Rs 96 lakh from the Bhopal tax authority.
According to the company's exchange filing, it has received a penalty order of Rs 96,19,920 lakh from the CGST and Central Excise Commissioner in Bhopal.
The filing said that “the order in appeal passed dropping tax demand of Rs 0.96 crore along with interest.” However, it added that the penalty for Rs 96,19,920 was upheld.
The order for penalty that the company received on Tuesday alleges “short payment of GST on upfront fee” by UltraTech Cement.
According to UltraTech Cement, following the order, there will be no material impact on its finances, operations, or other activities.
However, the company has stated that it is reviewing the order and will decide on further courses of action.
In December last year, UltraTech Cement Ltd. bought a non-controlling minority 8.31% stake in Star Cement for Rs 765 crore. The company was set to buy a stake of up to 3.36 crores in equity shares for Rs 227.7 apiece.
Star Cement promoters Rajendra Chamaria sold 4.83%, Rahul Chamaria offloaded 0.89%, and Sachin Chamaria sold 1.85% at Rs 227.7 apiece, according to NSE block deal data. Renu Chamaria also sold 30.03 lakh shares at Rs 227.7 per share. The promoters have exited the company with this sale of shares.
The acquisition marked UltraTech Cement's second acquisition of another listed company in 2024. The company had previously acquired the entirety of The India Cements Ltd. via three different financial investments.
In that same month, The India Cements had reported via stock exchange filings that UltraTech had completed the acquisition of 10,13,91,231 equity shares, representing 32.72% of the equity share capital in The India Cements. It had earlier acquired 7,05,64,656 equity shares, or a 22.77% stake, in the company.
Shares of Ultratech Cement Ltd. closed 1.87% lower at Rs 11,397.15 apiece on the BSE, compared to a 0.03% decline in the benchmark Sensex.
