Nuvoco Subsidiary Receives ₹10.7 Cr Tax Show Cause Notice

Nuvoco Vistas Corporation Ltd's wholly-owned subsidiary, NU Vista Limited, has received a Show Cause Notice from the Dy. Commissioner, State Tax (Audit), Central Division, Patna, Bihar. The notice proposes denying credit for Input Tax Credit (ITC) brought forward from the previous year, erroneously confirming demand for already reversed ITC, and imposing tax on advances received for goods. The proposed demand for FY 2022-23 under Section 73 of the CGST Act, 2017, amounts to ₹10,70,08,912/-, with consequential interest and a 10% penalty also proposed. The company believes the demand is against legal provisions and expects no major financial impact, as they will file an appropriate reply with supporting documents and legal precedents.