Akzo Nobel India Limited recently faced a significant development concerning its GST compliance. On May 31, 2024, the company received a Show Cause Notice (SCN) from the Madhya Pradesh GST Department. The notice pertained to the period 2019-20 and involved the disallowance of input tax credit under Section 73 of the CGST/SGST Act, 2017. The initial demand raised was a substantial Rs. 9,26,71,357, which included the total tax amount but no interest or penalty.

The company's response to this SCN was promptly submitted along with supporting documents. Following the review of these submissions, the department issued a revised order on August 27, 2024, which was officially received by Akzo Nobel India on August 28, 2024. This updated order now demands a revised amount of Rs. 77,13,373. The breakdown of this revised demand is as follows:

Tax: Rs. 70,12,157

Interest: As applicable

Penalty: Rs. 7,01,216

This reduction from the initial demand reflects the adjustments made after reviewing the company's detailed response. The order remains open for further submissions and review, and Akzo Nobel India is in the process of responding within the stipulated timeframe as mentioned in the order.

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Under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and according to the recent SEBI circular SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023, Akzo Nobel India is required to update the public on significant developments related to pending litigation. The company has complied with these regulations by disclosing the updated status of the litigation, providing clarity on the revised demand and its potential impact.

There is currently no litigation against key management personnel or promoters of the company, and no settlement has been reached that affects the financial position beyond the revised demand.

This update is crucial for investors and stakeholders as it provides insight into the ongoing compliance and legal challenges faced by Akzo Nobel India Limited. The company remains committed to addressing these issues transparently and will continue to keep the stakeholders informed of any further developments.

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