industry

Adani arm gets clean chit from CESTAT in over-invoicing case


A Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on Friday upheld the adjudicating authority’s order quashing over-invoicing allegations levelled by the Directorate of Revenue Intelligence (DRI) against Maharashtra Eastern Grid Power Transmission Company Limited (MEGPTCL), a subsidiary of (AEL).

Earlier in July, the Mumbai bench of the Tribunal had extended similar reliefs to two other Adani group firms which were issued show-cause notices by the department for allegedly siphoning off over Rs 3,900 crore by way of overvaluation using an UAE-based intermediary, EIF.

Sources told ET that the department has sent a proposal to the Central Board of Indirect Taxes and Customs (CBIC) for filing an appeal before the Supreme Court against the Tribunal’s orders on the point of both fact and law.

“CESTAT order is faulty and perverse both on the point of law and fact. A proposal has been made before CBIC (the department’s parent) to appeal against the Tribunal’s order before the apex court,” said sources privy to the development.

“A similar proposal would be sent against the said order to bring to the apex court’s notice the investigations made and the evidence collected by the department,” the sources added. These sources also said that no fresh evidence can be submitted before the apex court and the appeal would be on point of law and fact.

An email sent to the Adani group remained unanswered until press time.



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