Sales Tax Matters: -Guja rat
b. The Deputy Commissioner of Commercial Taxes, Surat, has passed an assessment order along with a demand notice for Rs. 36.67 lakhs for the financial year 2006-07 under Gujarat VAT Act, 2003. Meanwhile the company has paid Rs. 8.00 lakhs on 17.06.2011 being part payment towards above pending demand. In the Appeal company has received the favorable order for refund of the pre-deposit amount along with interest.
c. The Deputy Commissioner of Sales Tax, Surat has passed Assessment order along with demand notice for the financial year 2012-13 under Gujarat VAT Act, 2003 & CST Act, 2003 for Rs.1033.42 lakhs. The A.O. has charged tax on other income and disallowed High seas Sale, also calculated Interest u/s 42(6) and Penalty under section 34(12) of Gujarat Vat Act,2003. The Company has not accepted the above demand and filed a Writ Petition against the order before Gujarat High Court, Ahmedabad. The Company had filed appeal before Joint Commission of Commercial Tax, Surat. The Appellant Authority had passed order for Pre-deposit. The Company had also filed appeal before Sales Tax Tribunal, Ahmedabad against the pre-deposit order and granted stay. The Appellant Authority has passed order with relief tax on other income with interest & penalty but disallowed Highseas sales with total demand Rs.16,37,60,037/- [ Tax 4,96,04,486/-, Interest Rs. 10,42,34,654/- & Penalty Rs. 99,20,897/-]. After that we have filed appeal before Sales Tax Tribunal, Ahmedabad. The Company is granted stay for the same on VAT order. There is no provision required as per the management. The Management is of the opinion that no provision is required for such liability.
d. The Assistant Commissioner of Sales Tax, Surat has passed Assessment order along with demand notice for the financial year 2013-14 under Gujarat VAT Act, 2003 & CST Act, 2003 for Rs.1144.00 lakhs. The A.O. has charged tax on High seas Sale, ITC. Also, the Credit note disallowed, and Interest calculated on Interstate sales u/s 42(6) and Penalty under section 34(12) of Gujarat Vat Act,2003. The Company has not accepted the above demand and filed a appeal before DCCT, Surat. But Appellant Authority has rejected the appeal and stay application on the basis of pre-deposit condition. We have paid Rs.5 Lakhs on 15.09.18 towards pre-deposit for admission. The appeal order is passed in favor of the Company with refund of pre deposit amount. The Company attended the hearing before DCCT, Surat. The Appellant Authority has passed a favorable order with refund of Rs. 5 Lakhs which is yet to be received.
e. The Assistant Commissioner of Sales Tax, Surat has passed Assessment Order for the financial year 201415 of Rs. 2,43,37,910/- under Gujarat Value Added Tax Act, 2003 under section 32/34/35 dated 28.03.2019. The Company has filed an appeal before DCCT, Appeal 7, Surat. The Appellant Authority rejected the appeal, as no one attended the appeal hearing. After passing Covid period, the Company has filed Restore Application before DCCT, Surat on dated 07.03.2022. After hearing & submission, the stay has been granted till Dec-22. The Appellant Authority has passed favorable order and allowed carried forward to next year of Tax of Rs. 2,30,763/-.
f. The Assistant Commissioner of Sales Tax, Surat has passed Assessment Order dated 05.09.2019 under Gujarat Value Added Tax Act, 2003 towards VAT payable amounting to Rs. 25,674/- for the year 2015-16. The Company has filed Appeal against the order before Deputy Commissioner of Sales Tax, Surat on dated 17.08.2022, the order copy was received in the financial year 21-22. The Company has filed appeal along with condonation of delay. The Appellant Authority is allowed the appeal, passed favorable order and allowed carried forwarded of Tax of Rs. 2,22,359/-.
g. The Deputy Commissioner of Sales Tax, Surat has sent Assessment Order dated 31.03.17 under section 32/34/35 of Gujarat Value Added Tax Act, 2003 towards CST payable amounting to INR 1.97 Lakhs for the year 2012-13. Pre-deposit of INR 0.39 Lakhs has been made for the same. As per the order or notice dated 02.01.2019 the CST payable revised to INR 1.28 Lakhs. The Company filed an appeal before Sales Tax Tribunal, Ahmedabad against the order of JCCT, Surat. The Honorable Tribunal has granted the stay against recovery proceedings with pre-deposit payment of Rs. 10,000/-. The Company has paid challan of Rs.10,000/- on dated 03.03.2022 and intimation application filed before Honorable Tribunal, Ahmedabad for final stay order. After hearing, the Appellant order is passed and it is payable Rs. 3,45,151/- [Tax Rs. 97,716/- & Interest Rs. 3,08,747/-].
Maharashtra
h. The Deputy Commissioner of Sales Tax, Chandrapur, has issued Penalty order of Rs. 0.28 Lakhs under section 61 (2) of MVAT Act towards late submission of VAT Audit report for the financial year 2007-08. The Company did not accept the above demand and filed an appeal before Joint Commissioner of Sales Tax (Appeal), Nagpur, Maharashtra. The appeal is pending before the Joint Commissioner. Against the said demand, the Company has paid a sum of Rs. 0.10 Lakhs, being part payment towards pending demand. However, there is no provision required as per the management.
i. The Deputy Commissioner of Sales Tax, Chandrapur has sent Demand Notice dated 24.11.17 Under section 32 of The Maharashtra Value Added Tax Act. 2002 towards VAT payable amounting to INR 0.86 Lakhs and Interest on VAT payable amounting to INR 0.63 Lakhs for the year 2013-14. Pre-deposit of INR 0.09 Lakhs has been made for the same.
Tamilnadu
j. The Assistant Commissioner of Sales Tax, Chennai has sent NOTICE for the financial year 2010-11 under Tamilnadu VAT act, 2006 for Rs.0.23 lakhs.
Custom Matters
k. The Customs department has passed an order and demanded differential duty, interest and penalty
amounting to Rs. 277.54 lakhs for the financial year 2012-13 on the ground of classification of Coal i.e.
Bituminous Coal, whose GCV moist mineral matter free basis more than 5833 Kcal/kg. The Company did not accept the above order and filed an appeal. The company has paid a sum of Rs.22.30 Lakhs being Predeposit of pending demand. The Management is of the opinion that no provision is required for such liability.
l. The Customs department has passed an order for the financial year 2013-14 and demanded differential
duty, Interest and penalty on the ground that fake certificate of country of origin was produced based on
which benefit of exemption taken for Rs.81.91 Lakhs. The Company has not accepted the above order and filed an appeal. The Company has already paid Bank Guarantee of Rs. 75.00 Lakhs with self-renewal clause. Against this demand, the company has paid a sum of Rs.1.99 Lakhs, being Pre-deposit of pending demand. The Hon'ble CESTAT, Ahmedabad had set aside the order and remand back to Adjudicating for pass fresh order. The Additional Commission has heard hearing and dropped the allegation.
m. The Customs department has passed an order and demanded differential duty and Interest amounting to Rs. 63.61 lakhs on the ground of classification of Coal i.e. Lignite coal, whose GCV moist mineral matter free basis less than 4614 Kcal/Kg for the financial year 2014-15. The Company did not accepted the above orders and filed appeal before CESTAT, Bangalore. Against the said demand, the Company has paid a sum of Rs. 11.13 Lakhs being Pre-deposit of pending demand. The Management is of the opinion that no provision is required for such liability.
n. The Commissioner of Customs appeal, Ahmedabad, has passed order and demanded differential duty and Penalty (7 Lakhs) total amounting to Rs. 52.78 lakhs on the ground of classification of Coal. The company did not accepted the above orders and filed appeal (Appeal No: 244/2014-23.02.2015) before CESTAT-Ahmedabad, Surat. Pre deposit 10% on 45.78 lakhs has been paid INR 1,14,455 on 20.07.2015 and INR 3,43,366 paid by SURAT branch vide Ch.No 568778 / 26.05.17.
Other matters:-
o. An Execution Petition No. 240/2011 filed by Vitol against Asian Natural Resources India Ltd. (ANRIL) is pending before the Bombay High Court. During pendency of the said execution petition 54300 MT of coal was imported by Sharp Corp in the vessel named MV Vishva Ekta which was discharged at Tuticorin Port. Hemang Resources Ltd. (HRL) entered into two HSS agreement with Sharp Corp for purchase of 34300 MT coal. At the instance of Vitol, Bombay High Court vide Judges order no. 215/2014 issued precept to Tuticorin Court for attachment of entire quantity of 54300 MT coal. Tuticorin Court vide order dated 22.12.2014 passed in EA No. 159/2014 attached the coal. Later on the Tuticorin court vide order dated 10.12.2015 released 20000 MT coal owned by Sharp Corp and the remaining quantity of 34300 MT coal remained attached.
On attachment of coal of HRL, HRL approached Bombay High Court for releasing the coal on the ground that, they are not party to the Execution Petition hence the coal owned by them cannot be attached. However the court dismissed their application against which they went in appeal. The Bombay High Court vide order dated 06.09.2016 passed in Appeal No. 794/2015 held that, " on account of various factors such as common directorships, interlocking shareholding HRL is not only part of ANRIL/BIL group, but are alter-egos" hence the attachment of coal was upheld.
That out of 34300 MT 17300 MT coal was auctioned to Global Coal Ventures Pvt. Ltd. in compliance to the order dated 16.11.2016 passed by Tuticorin Court and the balance coal of 17000 MT was also auctioned by the Court Receiver appointed by the Bombay High Court to Global Coal Ventures Pvt. Ltd. for a sum of Rs. 3,14,50,000/-which was deposited with the Court Receiver.
HRL had filed an application under Order 21 Rule 58 of Civil Procedure Code before Tuticorin Court claiming his title over the 34300 MT and also filed an application for transferring the said amount Rs. 3,14,50,000/- to Tuticorin Court. But both the said applications were returned back to HRL holding that the applications are not maintainable. Against this order the management is in the process of filing petition before the Madurai High Court. The Management is hopeful of favorable orders from the higher courts and hence no provision has been made.
Further there was an order received from High Court of Judicature at Bombay Ordinary and Original Civil Jurisdiction Chamber Summons No. 1364 of 2018 in Execution Application No.240 of 2011 dated 10.01.2019, Global Coal Ventures Pvt Ltd has taken out chamber summons seeking refund of Rs.78,63,758/- as Global Coal
Ventures Pvt Ltd had paid for 17000 Mt but got delivery of only 12,749.32 Mt and therefore Global Coal Ventures has paid for 4250.680 MT coal which the coal was not received.
Global Coal Ventures states that they have paid excess of Rs.78,63,758/- to the court receiver and therefore the said amount to be refunded.
The court was satisfied that the actual available quantity was 12749.32 Mt only and certainly Global Coal Ventures Pvt Ltd has paid excess a sum of Rs.78,63,758/- and therefore they are entitled to be refunded. Court has refunded the excess sum to Global Coal Ventures Private Limited.
Further, the order dated 30.01.2025 has been passed in favour of the applicant i.e Vitol S.A and the court has ordered to remit the accrued amount of Rs.3,76,41,754/- to the applicant's account.
31.9 The Company is in the process of obtaining information from its suppliers/vendors and service providers and Company has written confirmation letters to parties for disclosure as required.
31.10 During the financial year 2013-14, the Company has made Interstate sales of Rs.868.52Lakhs against that 'C' Forms amounting to Rs.716.19 Lakhs has been received from the customers. Based on the experience, the management is confident to receive balance 'C' Forms from the customers till the finalization of assessment and therefore differential tax liability on non-receipt of 'C' forms has not been treated as Contingent Liability.
31.11The balances of Sundry Debtors, other deposits and advances are subject to confirmation from respective parties. Letter seeking confirmations have been sent by the Company but some parties are still to confirm the balances. In view of confirmation not having been received from all customers, the balances under these heads have been shown as per the books of accounts and are subject to reconciliation, if any. However, in the opinion of the management, the respective assets have been shown in the Balance Sheet are according to their realizable value. The adjustment, if any on reconciliation which in the opinion of the management would not be material, would be made once the accounts are fully reconciled.
Sundry Debtors amounting to Rs.2154.25 Lakhs are outstanding more than 180 days. The management is of the opinion that the whole amount will be recovered from parties so that the company has not created any provision on such debtor.
31.12 Hemang Resources Ltd had filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (herein referred to as "IBC") before the Honourable National Company Law Tribunal, Chennai Bench, against GTC for initiation of Corporate Insolvency Resolution Process (herein referred to as "CIRP") and the same was numbered as CP/1484/IB/2018. The application is being heard and adjourned from time to time by the said Hon'ble National Company Law Tribunal.
But Mr. Syed Khaja Alimuddeen, Whole Time Director of GTC Coal Private Limited agrees to settle the dues of HRL for and behalf of GTC Coal Private Limited by transfer / sell all piece and parcel of vacant land situated at Plot No.5, SUN VIEW, Kanathur Reddy Kuppam Village, Tirupur Taluk, Kancheepuram District measuring an extent of 1206 square feet for approximate value of Rs.40 lakhs. Mr. Syed Khaja Alimuddeen declares that he is legal and rightful owner of this unencumbered property and has all the rights to transfer the said property, documents/ deeds to Mr. Deepak Tiwary, Ex-Whole Time Director and Ex-Chief Executive Officer of Hemang Resources Ltd.
Mr. Syed Khaja Alimuddeen has transferred Power of Attorney to Mr. Deepak Tiwary, Ex-Whole Time Director and Ex-Chief Executive Officer of Hemang Resources Ltd. During the year under review, company has recovered the dues be selling the said property.
b) Willful defaulter clause is not applicable on the company
31.19 Loans & Advances and Unsecured Loans have been taken at their book value subject to confirmation and reconciliation.
31.20 During the year under review the Company has not given any Loans or Advances to promoters, Directors, KMPs and the related parties.
31.21 Title deeds of Immovable Property not held in name of the Company: Not applicable, as all title deeds of immovable property(ies) are in the name of the Company.
31.22 During the year under review the company has not revalued any of its Property (ies), Plant and Equipment.
31.23 Company is not holding any benami property.
31.24 Company doesn't have any transaction with companies struck off under Section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
31.25 There is no holding or subsidiary of the Company.
31.26 There is no pending registration or satisfaction of charges with Registrar of Companies.
31.27 During the year under review the provisions of Section 135 pertaining to Corporate Social Responsibility (CSR) is applicable on the Company and company is spending the amount toward CSR expenditures.
31.28 Company has not traded or invested in the Crypto currency or Virtual Currency during the financial year.
31.30The previous year's figures are regrouped and rearranged wherever necessary, in order to make it comparable with current year.
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