Swan Defence and Heavy Industries Limited Faces GST Demand Orders
Swan Defence and Heavy Industries Limited, formerly recently received significant orders under the Goods and Services Tax (GST) regulations for the financial year 2020-21. The company plans to appeal against this order and expects a favorable outcome, resulting in the quashing of the demand.
Mumbai: Swan Defence and Heavy Industries Limited, formerly known as Reliance Naval and Engineering Limited, has recently received significant orders under the Goods and Services Tax (GST) regulations for the financial year 2020-21. The orders, issued under sections 73 and 74 of the GST Act, were received on February 25, 2025, and detail substantial financial demands and penalties.
Details of the Orders:
1. Order under Section 73 for FY 2020-21 on EOU the GST demand is INR 1,00,13,885, Interest is INR 78,51,984, Penalty is INR 10,01,389 and the Total stood at INR 1,88,67,258
2. Order under Section 74 for FY 2020-21 on EOU the GST demand is INR 4,71,092, Interest is INR 3,72,872, Penalty is INR 4,71,092 and the Total stood at INR 13,15,056
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The orders highlight several alleged violations, including:
- Excess ITC availed/utilized amounting to INR 42,03,056 of CGST, INR 42,03,056 of SGST, and INR 4,89,767 of IGST.
- Differential of tax liability as per GSTR1 and GSTR3B amounting to INR 10,40,779 of IGST.
- Short reversal of ITC for INR 24,414 of CGST, INR 24,414 of SGST, and INR 28,399 of IGST.
- Demand of INR 2,35,546 of CGST and INR 2,35,546 of SGST with applicable interest and penalty for ineligible ITC claimed from non-existent taxpayers and return/tax defaulters.
Impact on Financials and Operations:
According to the document which is presented by the company in its regulatory filling, The demand pertains to the financial year 2020-21, during which the Corporate Insolvency Resolution Process (CIRP) was in progress. As per the approved resolution plan, any liabilities arising from direct or indirect taxes for any period prior to the approval date stand extinguished. The company plans to appeal against this order and expects a favorable outcome, resulting in the quashing of the demand. There is no material impact on the company's financials, operations, or other activities.
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