Siemens trades up after plea against show-cause notice on Rs 246-cr GST levy

In the last one month, the share price of the German engineering and technology conglomerate has plunged almost 8 percent on the NSE.

Shares of Siemens Ltd traded a percent higher to Rs 3,442 in the morning of October 25, snapping a five-day losing streak on the bourses, after the company said it has filed a writ petition before the Bombay High Court, contesting the show-cause notice (SCN) issued under Section 73 of the CGST Act, 2017.

The notice pertains to the levy of GST on the leasehold interest in a land in Worli, Mumbai, and the freehold interest in the buildings on the property. The expected implications of the tax and interest associated with this SCN amount to Rs 245.9 crore.

Follow our market blog for all the live action

The parties on the opposing sides of this legal dispute are the Ministry of Finance, the Department of Revenue, the State of Maharashtra represented by the Commissioner of State Tax and the Department of Registration and Stamps, as well as the Deputy Commissioner of State Tax from Belapur-502, Raigad Division, Navi Mumbai, who holds the authority for issuing the SCN.

"The company is legally advised that it has a strong case to defend the matter," Siemens said in a regulatory filing on October 23. In the last one month, the share price of the German engineering and technology conglomerate has plunged almost 8 percent on the NSE.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.