Hindustan Zinc Limited (HZL), a subsidiary of Vedanta Ltd, disclosed that it has received an order from the Additional Commissioner, Central Excise and CGST Commissioner, Udaipur, demanding payment under the Central Goods and Services Tax Act, 2017, as per regulatory. filing The company was directed to pay ₹91,90,16,104 as GST, along with an equivalent amount of penalty and applicable interest.
Shares of Hindustan Zinc Limited rose 0.94 percent ₹296.75, at 1:51 PM on March 22, on BSE. HZL’s stock is about 13 percent off its 52-week high of ₹344. The company enjoys a market capitalization of ₹1,25,386 crores.
Additionally, the restructuring plan of Hindustan Zinc Ltd (HZL), aimed at creating two separate entities, may be delayed for the time being. This comes as the government, holding a 29.54 percent stake in the company, has shown reluctance to the proposal.
In response to inquiries, HZL CEO Arun Misra informed Mint, “Based on the findings of a reputable consultant, we strongly believe that unbundling HZL to establish separate entities for Silver and Zinc could enhance the overall market capitalization of the company, thereby unlocking . value for all shareholders. We received a response from the Ministry of Mines, which is still being considered by the board together with our observations.”
Hindustan Zinc, a leading integrated producer of zinc, lead, and silver, is a subsidiary of the diversified natural resources company Vedanta Ltd.
In light of the merits of the case, the company expressed its intention to file a writ petition before the High Court, challenging the order.
Notably, in an identical matter for the previous year, Hindustan Zinc was granted an interim stay order by the Rajasthan High Court against a similar demand order.
The order, dated March 20, 2024, and received by the company on March 21 at 4:30 p.m., relates to the levy of GST on statutory levies such as the District Mineral Fund (DMF) and the National Mineral Exploration Trust (NMET) contributions. to the state treasury.
The company stated that it does not expect the aforementioned order to have any significant financial impact on its operations, considering the legal remedy available and the precedent of a temporary stay granted by the Court of Appeal.
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Published: 22 Mar 2024, 15:02 IST