TVS Srichakra Limited has made a regulatory disclosure pursuant to Regulation 30 of the SEBI Listing Regulations regarding receipt of a GST penalty order.
Details of the Action
The order relates to proceedings initiated by the State GST Department concerning the detention of a vehicle transporting goods. The proceedings were initiated because the e-Way Bill generated for the consignment by the supplier was subsequently rejected/cancelled by the recipient due to an inadvertent error. This resulted in the movement of goods without a valid e-Way Bill at the time of inspection by authorities.
Violation Details
The Department found that goods were transported without a valid e-Way Bill at the time of interception, as the originally generated e-Way Bill had been cancelled/rejected. The Department treated the accompanying documents as non-compliant with applicable GST provisions governing movement of goods.
Financial Impact
A penalty of ₹10.71 lakh has been imposed by the Department. The company is evaluating appropriate legal remedies, including filing an appeal before the competent appellate authority. The company explicitly states that it does not expect any material impact on its operations arising from this order.