Exicom Tele-Systems Limited has received an order from the Deputy Commissioner, Uttar Pradesh VAT, Ghaziabad. Section under which notice is passed: Section 28(2)(ii) Read with Section 32. Order date is March 31, 2024.

Passing Authority: Deputy Commissioner, UP VAT Ghaziabad. Period: Assessment Year 2016-17. Central Electronic Limited (CEL), Sahibabad, Ghaziabad had supplied Solar Energy Devices or Solar Energy Equipment to UP ­Police (HQ) at zero VAT since this material was exempt from VAT.

Exicom had supplied Invertor, Cables and Batteries to CEL at Zero VAT as Solar Energy Devices forming part of the overall supply, as per applicable law. However, the department has different view on the supply and services they considered Invertor exempt, but demanded 5% VAT on cables and 14.5 % VAT on battery. Therefore, this is a case of disagreement on views between the Company and Tax authorities.

As per the Company, there is no violation of law and have won a similar case in favor of the company of previous year assessment 2015-16 at the Additional Commissioner level. Name and details of the action taken: Demand for Tax and applicable Interest (without calculation) amount has been raised by the Authority. Tax: INR 14,627,511.

Interest: INR 16,549,125 (Approx.). Total: INR 31,176,636. Considering the merits of the case, and the company having won a similar case of previous assessment year 2015-16 at the Additional Commissioner level, the Company intends to file appeal before the Appellate Authority (Additional Commissioner for the assessment year 206-17) within time limit prescribed under the governing Law of 30 days.

The Company is hopeful of a favorable outcome thereof and does not expect the said Order to have any material financial impact on the Company. The order was received on April 12, 2024 after office hours and the next working day for the company is April 15, 2024.