Edible oils company Adani Wilmar has been penalized Rs 42 lakh by the Uttar Pradesh Goods and Services Tax (GST) department for availing transitional credit. The company received the order from the Deputy Commissioner of CGST and Central Excise Division, Lucknow-I.
In a regulatory filing, Adani Wilmar stated that it had been issued an order levying a penalty of Rs 41,99,465, which is equivalent to the tax demand under the Uttar Pradesh GST Act, 2017. The company confirmed that the order was received on February 4.
According to the filing, the penalty and tax demand are related to the transitional credit availed in Form TRAN-1. Adani Wilmar has indicated that it is taking necessary steps to challenge the penalty and will appeal the order before the appropriate authority.
Adani Wilmar, which sells edible oils and other food products under the Fortune brand, emphasized that it is actively pursuing legal remedies to contest the imposed penalty.