The GST intelligence department has issued a show cause notice to Patanjali Foods, requiring the company to justify why it should not repay input tax credit amounting to ₹ 27.46 crore.
According to a regulatory filing made by the company on April 26, the Directorate General of GST Intelligence, Chandigarh Zonal Unit, has issued a notice to the primarily edible oil business firm, the company’s Ayurved Group, led by Yoga guru Ramdev.
Also Read: ‘Informed Pak Before Disclosing To World’; Says PM Modi On Balakot Strikes
“The company has received a show cause notice that requires the company, its officers, and authorized signatories to explain why they should not repay input tax credit totaling ₹ 27,46,14,343 (plus interest) and why they should not face penalties,” the company stated.
What did Patanjali foods say?
“The company stated that as of now, they have only received a show cause notice from the authority, and the company intends to take all necessary actions to defend its case before the authority,” the company said.
“The company added that the expected financial consequences cannot be determined until the proceedings are concluded.”
“Patanjali Foods had previously announced that it would assess a proposal to acquire the non-food business of its promoter group, Patanjali Ayurved.”
According to a regulatory filing, Patanjali Foods revealed that its board had reviewed the initial proposal from Patanjali Ayurved Ltd regarding the sale of the latter’s non-food business undertaking to the company.
Established in 1986, Patanjali Foods Ltd, previously named Ruchi Soya Industries Ltd, holds a prominent position as an FMCG player.
The company manages its operations across edible oils, food, FMCG, and wind power generation sectors under various brands such as Patanjali, Ruchi Gold, Nutrela, and others.
Through the insolvency process, the brand acquired Ruchi Soya and subsequently renamed the company to Patanjali Foods Ltd.
Also Read: Ujjwal Nikam: From Kasab’s ‘Biryani Story’ To Sanjay Dutt’s Trial, Know All About The BJP Candidate
