Cochin Minerals & Rutile Limited has received a significant GST demand order from tax authorities, marking a regulatory challenge for the Kerala-based minerals company. The order demands substantial tax payments and penalties related to alleged input tax credit violations spanning two financial years.

GST Order Details

The GST authority has issued an order demanding a total of ₹8.95 crore from Cochin Minerals & Rutile. The breakdown of the demand is as follows:

The order pertains to financial years 2021-22 and 2022-23, focusing on alleged irregularities in input tax credit claims. The GST authority alleges that the company has availed excess or wrongful GST Input Tax Credit during the specified period.

Company's Response and Legal Strategy

Cochin Minerals & Rutile Limited has categorically rejected the demand raised by the GST department. The company has announced its intention to challenge the order through appropriate legal channels.

The company's planned response includes:

• Filing an appeal against the order before the concerned Appellate Authority
• Taking other appropriate action as advised by legal advisors
• Protecting the company's interests through all available legal remedies

Impact Assessment

Despite the substantial financial demand, the company has stated that it does not anticipate any impact on its financial, operational, or other activities. This assessment suggests the company's confidence in successfully challenging the GST order through the appellate process.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory filing ensures transparency with stakeholders regarding material developments affecting the company.

The company has provided comprehensive details of the GST order as required under regulatory guidelines, including the nature of allegations, financial implications, and planned course of action. The matter now moves to the appellate stage where the company will present its case against the GST department's claims.

Cochin Minerals & Rutile has announced a change in its board composition, as communicated by the Kerala State Industrial Development Corporation Limited (KSIDC). The company has informed the stock exchanges about this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Changes in Board Composition

KSIDC has withdrawn the nomination of Shri. Hari Krishnan R, IRTS, who previously served as the Executive Director on Cochin Minerals and Rutile Limited's board. Consequently, Shri. Hari Krishnan R will vacate his office as a Director from the company's Board.

In his place, KSIDC has nominated Shri Rajesh Jacob, who currently holds the position of Dy. General Manager CCO, as their new Nominee Director on the Board of Cochin Minerals and Rutile Limited.

Next Steps

The company has stated that these changes will be placed for consideration in the forthcoming Board Meeting. Cochin Minerals and Rutile Limited has assured that all necessary actions will be carried out in compliance with the applicable provisions of the Companies Act, 2013 and SEBI Regulations.

This board restructuring reflects KSIDC's ongoing involvement in Cochin Minerals and Rutile Limited's governance and highlights the relationship between state development corporations and publicly listed companies.

Shareholders and investors of Cochin Minerals and Rutile Limited should take note of this change in the company's leadership structure.