Bansal Wire Gets GST Show Cause Notice for ₹6.70 Cr
Bansal Wire Industries Limited has received a Show Cause Notice from GST authorities demanding ₹6.70 crores in tax, penalty, and interest. The notice, issued by the Joint Commissioner, SGST, Corporate Circle-I, Ghaziabad Zone-I, Uttar Pradesh, alleges availment of blocked and excess Input Tax Credit and non-payment of tax on RODTEP license sales. The company strongly contests the notice, stating it has no merit. Similar notices for previous years were resolved with negligible amounts. The company expects no material impact on financials or operations.
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Bansal Wire Industries Limited has disclosed receiving a Show Cause Notice from GST authorities demanding ₹6.70 crores in tax, penalty, and interest. The steel wire manufacturer made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Notice Details and Allegations
The Show Cause Notice was issued by the Joint Commissioner, SGST, Corporate Circle-I, Ghaziabad Zone-I, Uttar Pradesh, under Section 74 of the SGST/CGST Act, 2017.
| Parameter | Details |
|---|---|
| Issuing Authority | Joint Commissioner, SGST, Corporate Circle-I |
| Location | Ghaziabad Zone-I, Uttar Pradesh |
| Legal Provision | Section 74 of SGST/CGST Act, 2017 |
| Tax Demand | ₹6.70 crores |
| Additional Liability | Equivalent penalty and applicable interest |
The allegations in the notice involve availment of blocked and excess Input Tax Credit (ITC) and non-payment of tax on sale of RODTEP (Remission of Duties and Taxes on Exported Products) license.
Company's Response and Position
Bansal Wire Industries has strongly contested the notice, stating that it is untenable and has no merit. The company emphasized that the tax amount of ₹6.70 crores demanded under Section 74 of SGST/CGST Act, 2017, along with equivalent penalty and applicable interest, should not be levied.
The management has indicated that they are reviewing the SCN and evaluating compliance obligations. The company plans to file an appropriate response to the notice within the prescribed timelines with the appropriate authority.
Historical Context
The company disclosed that similar notices had been issued by authorities for multiple previous financial years:
- FY 2018-19
- FY 2019-20
- FY 2020-21
- FY 2021-22
- FY 2022-23
Significantly, all these previous matters were resolved with negligible amounts, which strengthens the company's confidence in contesting the current notice.
Financial and Operational Impact
The company has stated that there is no material impact on financials, operations, or other activities arising from the Show Cause Notice. This assessment is based on their experience with similar notices in previous years and their belief in the lack of merit in the current allegations.
| Impact Assessment | Status |
|---|---|
| Financial Impact | No material impact expected |
| Operational Impact | No disruption anticipated |
| Business Activities | Normal operations continue |
| Previous Resolutions | Negligible amounts in past cases |
The disclosure was made in compliance with regulatory requirements, and the company has made the intimation available on its website at www.bansalwire.com for stakeholder information and record.
Historical Stock Returns for Bansal Wire Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.91% | -0.86% | -1.49% | -19.98% | -30.95% | -11.22% |
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