Larsen & Toubro announced on Tuesday that the Bombay High Court has quashed a GST claim by ₹The company was fined Rs 2,237 crore.
“The Company had filed a writ petition in the Bombay High Court against the show cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai in connection with the demand for service tax of ₹“2,237 crore, in a erstwhile subsidiary, in respect of tax already paid by the Company in respect of certain transactions carried out after the demerger,” L&T said in a stock exchange filing.
The company subsequently received the High Court order on August 19, granting approval to the writ petition filed by the company and quashing the show-cause notice issued by the GST authorities, the filing said.
“We wish to inform that the Company on August 19, 2024 has received an order from the Hon’ble Bombay High Court, allowing the writ petition filed by the Company and quashing and setting aside the show cause notice issued by the GST authorities,” the company added.
Last month, Larsen & Toubro reported a 12 percent rise in net profit for the first quarter of fiscal year 25, which was slightly below expectations, as the company’s operating income grew 15 percent in the April-June period.
Driven by higher revenues, L&T’s net profit rose to ₹2,786 crore in the three months ended June 30, compared with ₹2,493 crore rupees a year earlier, though slightly below estimates ₹2,876 crore. Its revenues rose by 15 percent to ₹55.12 billion rupees, beating the forecast of ₹52,518 crores.
“We have achieved consistent growth across all financial parameters in the first quarter of FY 2024-25, despite the geopolitical situation across the globe. Amidst several transformational changes happening across the globe, we are well positioned to leverage these opportunities with our expertise in our traditional P&M business and new generation technology-driven businesses. The financial services portfolio has achieved a remarkable transformation in retail finance with improved profitability. To enhance our presence in the semiconductor sector, we have recently signed a share purchase agreement with SiliConch Systems, a Bengaluru-based chip design company,” said SN Subrahmanyan, Chairman & Managing Director.
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