Deccan Cements Ltd

Mrs. Mahpara Ali was appointed as the member of the Audit Committee on 1st April 2024 and appointed as the Chaiperson of the Audit Committee with effect from 11th July 2024.

The Sales Tax Dept. demanded Rs. 85,67,680/- Tax on alleged deemed excess production of Cement based on the Energy Audit for the Asst. Year 1999-2000 and Asst. Year 2000-01. The Company has fild SPLA 1/2007 and SPLA 2/2007 before the Honorable High Court of Telangana. The Honorable High Court in their interim order Stayed collection of the disputed amount. The matters are pending

The Company had imported 25,000 MTs of coal from different suppliers and cleared the same classifying under CTH 2701 1920 claiming the same as "Steam Coal". The Company claimed the benefit of exemption Notification No. 12/2012-Cus. Dated 17.03.2012 (SI. No. 123 as amended). On the ground that the calorific value of coal imported by the Company was greater than 5833 kcal/kg and its volatile matter exceeded 14%, the Commissioner of Customs, Central Excise and Service Tax, Guntur, the Adjudicating Authority, passed the order that the coal imported by the Company was correctly classifiable as "Bituminous Coal" under CTH 2701 12 00. Therefore, the Company was liable to duty as provided for SI. No. 124 in the notification ibid. Initially, the Company had paid Rs.1.00 crore on 12.11.2012. Again, before the adjudication order was passed, the Company had paid Rs.1,42,42,498 (entire differential duty along with interest) to the Commissioner of Customs, Guntur. However, the Commissioner of Customs in OIO No. 38/2013-Customs dated 28.11.2013, passed the order that the Company required to pay an amount of Rs. 1,42,42,498/- as differential duty, imposed a redemption fine of Rs.2,00,000/- in lieu of confiscation of goods of 25,000 MTs under Section 125 of the Customs Act, 1962 and imposed a penalty of Rs. 1,55,27,200/-. Aggrieved by the order of the Commissioner with regard to imposition of low Redemption Fine of Rs.2,00,000/- in lieu of confiscation against the quantity of 2806.07 MTs having value of Rs. 1,44,61,018/-, the Department has filed Appeal No. C/21256/2014 before the CESTAT, Bangalore, and the said matter is transferrd to pending before the CESTAT, Hyderabad. Against the said adjudication order passed by the Commissioner, the Company had filed Appeal No. C/20762/2014-DB, and Stay Application No. C/Stay/2084/2014 before the CESTAT, Bangalore. CESTAT, Bangalore on 03.07.2014 passed the final order in 21062/2014 wherein they upheld the decision of the Adjudicating Authority as far as demand for customs duty and interest thereon. Whereas, they set aside the penalty and redemption of fine. The Company has filed Civil Appeal No.10299/2014 in Oct 2014 before Hon’ble Supreme Court against CESTAT - Bangalore final order No. 21062/2014 Dated 03.07.2014 in an Appeal No. C/20762/2014-DB. Matter is pending before the Honorable Supreme Court of India. The Department has filed CEA No.85/2015 before the Hon'ble Andhra Pradesh High Court to set aside the CESTAT's Final Order No.21062/2014, dated 03-07-2014 to the extent of dropping the penalty and redemption of fine against the company, which amounts to Rs.1,55,27,200/-. The matter is pending before the Andhra Pradesh High Court.

The Asst. Commissioner of Commercial Taxes, LTU, Nalgonda issued impunged Notice dated 7th October 2014 calling upon the Company to pay the deffered Sales Tax for the FY 2000-01 availed under APGST and CST Act to a Total amount of Rs.1,21,20,161/- on or before 31st March 2014, contrary to the GOMs No.108 dated 20th May 1996 and the final eligibility certificate dated 6th June 2000 as revised by the eligibility certificate dated 11th December 2002 and the agreement entered into by the the Company with the State of Andhra Pradesh on 31st March 2001. The company suppose to repay the sales tax deferment availed in the year 2000-01 as tax liability for the month of March 2015 along with the monthly return for the said month, the repayment for the subsequent years 2001-02 and onwards as payable at the end of the fourteenth year thereof. The Company has filed the Writ Petition 31807/2014 before the Hon'ble High Court. Matter is pending. However, the Company is making the repayment as per the schedule in the Agreement.

The Company was paying Clean Energy Cess on imported coal used as input to its cement manufactuing process and taking input tax credit. On the objection raised by the GST Authorities, the Company had reversed the Input Credit. However, the Commissioner of GST & Central Excise, Ranga Reddy GST Commissionerate, Hyderabad, Telangana in their Adjudication Order-In-Original Nos. HYD-EXCUS-003-COM-012-15-16 dt.31.12.2015, HYD-EXCUS-003-COM-040-16-17 dt.31.05.2016, HYD-EXCUS-004-COM-018-17-18 dt.31.10.2017 confirmed the demand and reversal of credit availed. Further, the Adjudicating authority held that no interest need to be paid as the company did not avail the credit though it has taken in the books. Therefore, penalty is not to be imposed on the company. Aggrieved by the order of adjudicating authority, the Company had filed Appeal Nos. 30305/2016, No.30704/2016, 30220/2018 before the CESTAT, Hyderabad. The Hon’ble Tribunal vide the impugned common Final Order No.A/30684-30692/2019 dt.16.07.2019 had upheld the denial of cenvat credit on Clean Energy Cess while setting aside the penalty and interest. Aggrieved by the impugned order of the Hon’ble Tribunal as far as denial of cenvat credit of Clean Energy Cess is concerned, the Company has preferred appeal before the Hon'ble High Court of Telangana by filing CEA 07/2020, CEA 08/2020, and CEA 11/2020. Matters are pending.

The Company had filed its IT Return for the A.Y. 2015-16 on 30.09.2015 declaring the total income at Rs. 13,68,59,390/- under normal provision of the Act and Rs. 21,34,25,085/- under MAT provision. The return was processed and an order u/s 143(1) of the IT Act was passed on 31.01.2016 resulting in a demand payable of Rs. 2,44,920/-. Subsequently, the case was selected for reopening and a notice u/s 148 of the IT Act dated 31.07.2022 was issued to the Company. Thereafter, an order u/s 147 r.w.s. 144B of the IT Act was passed on 30.05.2023 by assessing the income at Rs. 17,66,27,538/- resulting in a demand payable of Rs. 2,76,599/-. However, on perusal of the computation sheet, it is noticed that the total income was considered at 13,60,40,570/- in computation sheet instead of Rs, 17,66,27,538/- as assessed vide order dated 19.02.2024 which resulted in underassessment of assessed income with a consequential short demand of Rs. 2,72,32,375/-. As per the assessment order the total demand is Rs.2,75,08,974/-. The Company has filed an appeal against the assessment order passed by the Asst. Commissioner.

Suppliers had wrongly reported in Form GSTR 01, the supplies made to the Company as B2C supply instead of B2B supply for the tax period of 2017-18 (during impementation period of GST). The supplier submitted certificate to the GST Authorities stating that they wrongly reported the B2B supplies as B2C supplies. However, the Asst. Commissioner (ST) (Audit), Regional GST Audit & Enforcement Office, Vijaywada did not considered the above stated facts into consideration and passed the impunged order on 15th November 2023. As per the said order, the demand is as under: Tax: Rs.9,22,796 Interest: Rs.5,82,044 (upto 15.11.2023) Penalty: Rs.92,280 Total Rs.15,97,120/- The Company has pre-deposited Rs.92,280/- (10% of the disputed tax) and filed an Appeal before the Appellate Additional Commissioner (ST) at Vijaywada on 13th Februray 2024. Personal hearing was hed on 9th July 2024.