Mangalore Refinery And Petrochemicals Faces GST Recovery Demand From Tax Authorities

Mangalore Refinery and Petrochemicals Faces GST Recovery Demand from Tax Authorities

Mangalore Refinery and Petrochemicals Limited (MRPL) has been issued a demand order by the Office of the Commissioner of Central Excise & Central Tax, Mangaluru Commissionerate. The Additional Commissioner has invoked Section 17(2) of the CGST

Act, 2017, along with Rule 42(1) of the CGST Rules, 2017, imposing a recovery demand related to CGST input tax credit.

According to the regulatory filing, the order demands the recovery of ₹7,38,38,561 for the period starting July 2017 under Section 17(2) of the CGST Act, 2017. Additionally, the authority has imposed an interest charge at the applicable rate until the date of reversal or payment, under Section 50(3) read with Section 74(1) of the CGST Act, 2017. A penalty of ₹7,38,38,561 has also been levied under Section 74(1) read with Section 122(2)(b).

The issue pertains to the non-reversal of CGST input tax credit for November, linked to the carry-forward of the basic service tax amount from the previous tax regime, as per Section 17(2) of the CGST Act, 2017, and Rule 42(1) of the CGST Rules, 2017.

MRPL has stated that it is reviewing the order and intends to challenge it before the appropriate appellate authority.