Court rules in favour of BEL in tax demand case

The Karnataka court passes judgement in favour of Bharat Electronics in Rs. 851 crore sales tax demand case. The company has also received a refund of Rs. 85 crore deposited as advance toward the tax demand.

Bharat Electronics's Bangalore units had received demand notices from the Deputy Commissioner of Commercial Taxes (DCCT), Karnataka for good sold in the assessments years 2008-09 to 2013-14 and 2015-16. The notice disputed that the goods were sold at concessional rates of Sales Tax and

the taxman sought to charge at non-concessional rates of sales tax. The company filed appeals against the tax demand and filed a writ petition in High Court of Karnataka.

The Joint Commissioner of Commercial Taxes (JCCT Appeals) passed an order for all the years in the favour of BEL, said the company in a filing to the exchanges on Monday.

Reacting to the news, the stock of Bharat Electronics closed at Rs. 82.75 per share, up by 3.18 per cent on Monday. The benchmark index BSE Sensex closed at 36,526.14, up by 299.00 or 0.83 per cent, while Nifty50 closed at 11,008.30, up by 77.85 points or 0.71 per cent.