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Moneycontrol.com India | Accounting Policy > Glass & Glass Products > Accounting Policy followed by Triveni Glass - BSE: 502281, NSE: TRIVENSHET
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Triveni Glass

BSE: 502281|NSE: TRIVENSHET|ISIN: INE094C01011|SECTOR: Glass & Glass Products
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Triveni Glass is not traded in the last 30 days
Mar 15
Accounting Policy Year : Mar '16

i) Contingent liabilities:

(a) The Company received Show-cause cum Demand Notices in routine way regarding non-admissibility of Modvat credit due to technical defects in documentation. Most of the defects are curable and are allowed at the first or second stage of hearing. As on 31.03.2016, such show-cause cum demand notices proposing to disallow modvat credit stood at Rs. 111.00 lacs (2014-15 Rs. 111.00 lacs).

(b) The Commissioner Central Excise reconfirmed demand of Rs 20.96 crores and imposed equal penalty thereon after adjudicating the case. He also imposed penalties on Directors and Senior Officers of the Company. We had filed appeal against the order along with the stay application for waiver or pre deposit before Central Excise Tribunal New Delhi who have allowed unconditional stay. The case has now been transferred to newly constituted bench of CESTAT at Allahabad.

(c) Sales Tax Department has created a demand of Rs. 107.21 lacs (2014-Rs.107.21 lacs) disputing the rate of tax on Tinted Glass and other sales tax matters, which the company has not admitted. However, the Hon’ble High Court of Allahabad has disallowed our appeals against higher rates of Tax on tinted glass and we have filed SLP against the same before Hon’ble supreme Court.

(d) Modvat credit on capital goods availed during installation of Float Glass plant to the extent of Rs. 7.26 Crores was disallowed by Jurisdictional Deputy Commissioner and equal penalty was imposed by wrongly treating Float Glass as a separate and independent unit while the fact is otherwise. Float Glass Plant is an expansion of the then factory and the department itself has endorsed Float Glass Plant in our Central Excise License (Registration Certificate) as expansion. Against, the order of the Commissioner (Appeals), we have filed appeal before CESTAT, New Delhi, which has completely waived pre-deposit of 100% of the required amount. Now the case will be heard and decided on merits in due course.

(e) There are three (3) EPCG licenses wherein in case of the main license for input of 2nd hand figured glass though the export obligations have been completed by us but some documents have not been filled with DGFT Kanpur. Hence a liability of Rs 117 lacs plus interest Rs 309 lacs as on 31st of March 2016 is disputed. In case of another license the duty amount due is Rs 79 lacs plus interest Rs 179 lacs total Rs 258 lacs. In case of third license which is for frosting machine the liability is about Rs 10 lacs. In case of advance licenses the duty amount due is Rs 107 lacs and another Rs 280 lacs is due on account of interest and penalty. As our case is before BIFR hence we have requested in our debt restructuring proposal for waiver of interest and penalty amount. In case of the advance licenses, once our balance exports made during the years 1995-2005 are accepted by DGFT Kanpur then these advance licenses obligations will also get fulfilled and there will not be any liability on this account and therefore the final liability is only on second and third EPCG licenses that is Rs 79 lacs which may arise.

(f) Recently the company has also filled appealed before Tribunal against order passed by appellate Commissioner Allahabad for Rs 788191/- and Rs 421831/- demanding duty on sound delivery charges against government supplies.

(g) Our request for remission on Duty of Finished goods has been rejected by the Assistant Commissioner, thus creating a demand of Rs 43237/- and equal penalty thereon. We have filed appeal against the said order.

(h) Being aggrieved with the order of Commissioner Appeals confirming demand of Rs 130372 and imposing equal penalty thereon for allegedly charging higher prices from depot as compared to expected prices. We have filed appeal before Central Excise Tribunal Delhi which has directed us to deposit the balance amount till the case is finally decided the amount has been adjusted against the input credit available with us.

(i) A penalty of Rs. 6767637 has been imposed by Central Excise department for utilizing CENVAT credit subsequently earned for payment of excise duty at Rajamundry. Appeal against the same is pending before CESTAT, Bangalore.

(j) The company has received notice for arrear payment of Rs. 198 lacs from Allahabad Sales Tax Department out of which Rs. 107 Lacs relates to the rate of tax on tinted glass which is sub judice and is pending before Hon’ble Supreme Court. Balance dues pertaining to various years are being checked and reconciled.

Source : Dion Global Solutions Limited
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