Lemon Tree Hotels Limited announced in continuation to disclosure made on 8th March, 2024, this is to apprise that another unit has received order for recovery of Service Tax and penalties from Office of the Commissioner of Goods & Service Tax & Central Excise, Delhi under Section 73 of Finance Act, 1994 read with Section 142 and 174(2) of the Central Goods and Services Tax Act, 2017 (CGST 2017) on 8th March, 2024. Name of the authority: Office of the commissioner of central goods & service Tax Delhi south Commissionerate. Nature and details of the action(s) taken, initiated or order(s) passed: Demand of service tax amounting to INR 59,26,516 including applicable cess under provision of section 73(1) of the Finance Act, 1994 read with section 174(2) of CGST Act, 2017; Demand and recovery of interest on the above amount under section 75 of the Finance Act; Imposing penalty and order for recovery of Penalty of INR 10,000 under section 77 of the Finance Act, 1994 and penalty amounting to INR 59,26,516 under section 78 of the Finance Act, 1994.

Order(s) dated February 26, 2024, Received by the Company on March 08, 2024. Details of the violation(s)/contravention(s) committed or alleged to be committed: Not correctly assessing the service tax due on service charge, Recovery of short levied and short paid service tax under section 73(1) of the Finance act read with section 174(2) of the CGST Act, penalty under section 78 and 77 of the Finance act read section 174 of the CGST Act, 2017.