JSW Infrastructure Limited , a key player in India's port infrastructure sector, announced that its subsidiary Ennore Coal Terminal Private Limited (ECTPL) has received a Goods and Services Tax (GST) show cause notice amounting to ₹96.58 crore from the Chennai tax authorities.

Details of the Notice

The notice, issued by the Joint Commissioner, Office of The Commissioner of GST and Central Excise, Audit - II Commissionerate, Chennai, Tamil Nadu, alleges tax contraventions during the period from April 2019 to March 2024. ECTPL has been given 30 days to respond and show cause as to why the GST amount, along with applicable interest and penalty, should not be demanded.

Company's Response

JSW Infrastructure has stated that the notice has no material impact on the company's financial, operational, or other activities. The company maintains that it has strong legal and factual grounds to contest the proceedings.

In an official statement, JSW Infrastructure said, "The Company firmly believes that it maintains strong legal and factual grounds and is fully prepared to address and contest the aforesaid SCN for any future proceedings, should they be initiated by the Authorities against the Company."

Market Reaction

The news of the GST notice appears to have had a minimal impact on JSW Infrastructure's stock price. As of the latest trading session, JSW Infrastructure shares closed at ₹322.65 on the Bombay Stock Exchange (BSE), down by a marginal 0.06%.

Implications and Next Steps

While the company asserts that the notice will not materially affect its operations, the substantial amount involved (₹96.58 crore) underscores the importance of the matter. ECTPL will need to present its case within the 30-day window provided by the tax authorities.

The outcome of this case could have implications for other companies in the infrastructure and port operations sector, particularly regarding GST compliance and interpretation of tax laws in the context of port services.

Investors and industry observers will be closely watching how JSW Infrastructure and its subsidiary handle this tax issue, as it could set a precedent for similar cases in the future.

JSW Infrastructure Ltd , a leading port infrastructure company, has made significant strides in expanding its operations across India. The company recently inked two major deals that are set to strengthen its position in the logistics and port sectors.

30-Year Concession Agreement with Kolkata Port

JSW Infrastructure has signed a 30-year concession agreement with the Syama Prasad Mookerjee Port Authority in Kolkata. This long-term partnership involves the reconstruction and mechanization of berths 7 and 8 at the Netaji Subhash Dock. The project will be executed through JSW Kolkata Container Terminal Pvt Ltd, a wholly-owned subsidiary of JSW Infrastructure.

According to the LODR filing, JSW Kolkata Container Terminal Private Limited entered into the concession agreement with the Port Authority. This follows the Letter of Award received for the reconstruction of Berth No. 8 and mechanization of Berth Nos. 7 and 8 at Netaji Subhash Dock of Kolkata Dock System. The project will be implemented on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis through a Public-Private Partnership (PPP) mode.

Expansion in Karnataka: Multi-Modal Logistics Park

In a separate development, JSW Port Logistics, another entity under the JSW Infrastructure umbrella, has acquired an 86-acre brownfield rail siding in Kudathini, Karnataka. The acquisition, valued at ₹57.00 crore, is part of a larger plan to develop a multi-modal logistics park in the region.

The company plans to invest a total of ₹380.00 crore in this facility, which will include:

• A rail freight terminal
• Container systems
• An inland container depot

JSW Infrastructure expects the Kudathini facility to commence operations within six months, signaling a rapid expansion of its logistics capabilities in southern India.

JSW Infrastructure's Growing Portfolio

With these new developments, JSW Infrastructure continues to expand its already impressive portfolio. The company currently operates:

• 12 port concessions across India
• 1 liquid storage terminal in Fujairah, UAE

These strategic moves align with JSW Infrastructure's vision to enhance its presence in key logistics and port operations across the country.

Market Response

Despite these significant announcements, the market response was muted. JSW Infrastructure's shares closed marginally lower by 0.11% at ₹314.90 on the National Stock Exchange (NSE).

As JSW Infrastructure continues to expand its operations and secure long-term agreements, industry observers will be keenly watching how these developments translate into the company's financial performance and market position in the coming years.