Tenneco Clean Air receives ₹567 Cr GST show cause notice for FY23
- Received show cause notice for excess ITC claim of ₹28.5 crore for FY23
- Total demand including interest and penalty stands at approximately ₹56.7 crore
- Company asserts adequate legal grounds to contest and denies material impact
- Notice issued by Maharashtra GST Department under Section 73(1) of MGST Act
*this image is generated using AI for illustrative purposes only.
Tenneco Clean Air India Limited received a show cause notice from the Maharashtra Goods and Services Tax Department regarding an excess Input Tax Credit claim of ₹28.5 crore for FY23.
The notice, dated September 29, 2026, was issued by the Deputy Commissioner of State Tax under Section 73(1) of the Maharashtra GST Act, 2017. The total financial implication cited in the notice aggregates to approximately ₹56.7 crore, comprising the primary tax demand, accrued interest, and penalty amounts.
Breakdown of GST Demand
The regulatory filing details the specific components of the disputed amount as follows:
| Component | Amount (₹) |
|---|---|
| Excess ITC Claim | 28,54,88,700 |
| Interest | 22,44,29,799 |
| Penalty | 5,71,17,740 |
| Total Demand | 56,70,36,239 |
Company Response and Status
Tenneco Clean Air India stated that it possesses adequate factual and legal grounds to contest the allegations. The company is currently evaluating the claims raised in the notice and is preparing a detailed response supported by relevant reconciliations, records, and legal submissions. This response will be filed within the prescribed timeline mandated by the authorities.
The company emphasized that the show cause notice is at a preliminary stage and does not constitute a final order or a confirmed demand. Consequently, Tenneco Clean Air India does not presently envisage any material impact on its financial position, operations, or other activities arising from this disclosure.
What the Numbers Show
The interest component of ₹22.4 crore represents nearly 79% of the principal tax demand of ₹28.5 crore. This high ratio suggests that the dispute has been ongoing for a significant period since the FY23 period in question, accumulating substantial interest charges under the statutory provisions before the issuance of this specific show cause notice.
Historical Stock Returns for Tenneco Clean Air
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.47% | -1.59% | -4.52% | -7.02% | +0.68% | +0.68% |
How might the high interest-to-principal ratio influence Tenneco's strategy in negotiating a settlement versus pursuing prolonged litigation?
What are the potential ripple effects on Tenneco's global supply chain partners if this tax dispute escalates into a broader regulatory audit?
Could this case set a precedent for stricter ITC scrutiny by Indian tax authorities against other multinational automotive component manufacturers?
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