The Anti Evasion Department, Nagpur-1 GST Commissonerate detected reversal of unutilised Compensation Cess of total Rs 32 crore of two separate entities at MIDC Tadali, Chandrapur, recently.

Based upon the intelligence developed through AIO data, a summons was issued to M/s. Shree Sidhbali Ispat Limited (GSTN- 27AAICS7644D1Z6) PPOB at C-2, C-3, Nagpur Road, MIDC Tadali, Chandrapur, which had unutilised Input Tax Credit (ITC) of Compensation Cess paid on purchase of coal, even though there are no/any outward supplies of goods/services made by the companies which attract Compensation Cess under Section 8 of the Goods and Services Tax (Compensation to States) Act, 2017. The taxpayer has reversed the ITC of Compensation Cess to the tune of Rs 6.83 crore.

Under similar circumstances, a summons was issued to M/s Sanvijay Alloys and Power Limited (GSTN- 27AACCG2424R1ZB) PPOB at Plot No. A-23, MIDC Industrial Area, Tadali Growth Centre, Tadali, Chandrapur.

The taxpayer has reversed the ITC of Compensation Cess to the tune of Rs 25.14 crore. Further investigation in both these cases is under process.