Tax Tussle at Nuvoco: ₹28.4 Million ITC Denial Sparks Show Cause Notice

Image Source: Upstox

Nuvoco Vistas Corporation Ltd, one of India’s leading cement manufacturers, has received a show cause notice from the Haryana tax authorities concerning the denial of Input Tax Credit (ITC) worth ₹28.4 million. The company has swiftly responded, asserting that the denial is incorrect and confirming that there will be no financial impact from the notice.

Key Highlights:

1. The notice was issued by the Office of the Excise and Taxation Officer, Panchkula, Haryana, challenging the company’s claim of ITC under the Goods and Services Tax framework.
2. The disputed amount totals ₹28.4 million, linked to transactions that Nuvoco maintains were fully compliant with GST regulations.
3. The company has clarified that the issue is procedural in nature and does not reflect any wrongdoing or misreporting.

Company Response:

- Nuvoco has stated that it will respond to the show cause notice within the stipulated timeframe, providing all necessary documentation and legal justification.
- The company emphasized that the ITC denial is not expected to result in any financial liability or penalty.
- Internal reviews and legal consultations are underway to ensure the matter is resolved efficiently.

Operational Impact:

- There is no disruption to business operations or cash flow.
- The company continues to maintain its compliance posture and transparent engagement with tax authorities.

This development highlights the growing scrutiny around GST claims and the importance of robust documentation in high-value transactions.

Sources: BSE Corporate Filings, Economic Times, ScanX News, Business Standard