JSW Infrastructure Limited, one of India’s leading port infrastructure developers, announced that its subsidiary, Ennore Coal Terminal Private Limited (ECTPL), has received a show cause notice (SCN) worth ₹96.58 crore from the Chennai tax authorities. The notice pertains to alleged Goods and Services Tax (GST) contraventions during the period April 2019 to March 2024.
Details of the Notice
The notice was issued by the Joint Commissioner, Office of the Commissioner of GST and Central Excise, Audit–II Commissionerate, Chennai, and calls upon ECTPL to explain why the GST amount, along with interest and penalty, should not be recovered. The subsidiary has been given 30 days to respond.
Company’s Response
JSW Infrastructure has downplayed the potential impact of the notice on its business. In a regulatory filing, the company clarified that the matter would have no material effect on its financial performance or operations. It also emphasized that it has strong legal and factual grounds to contest the allegations.
In its statement, the company said:
“The Company firmly believes that it maintains strong legal and factual grounds and is fully prepared to address and contest the aforesaid SCN for any future proceedings, should they be initiated by the authorities.”
Implications and Next Steps
Although JSW Infrastructure has maintained confidence in its defense, the large quantum of the notice highlights the seriousness of the issue. The case will be closely monitored by industry stakeholders, as the outcome could influence how GST laws are interpreted and enforced in the infrastructure and port services sector.
For now, the company’s stance suggests that it is prepared for a legal contest, and investors will be awaiting clarity on how the proceedings evolve in the coming months.
Summary
JSW Infrastructure’s subsidiary, Ennore Coal Terminal Pvt Ltd, has received a ₹96.58 crore GST show cause notice from Chennai tax authorities for alleged tax violations between April 2019 and March 2024. The company has 30 days to respond but maintains that the notice has no material impact on its financials or operations. JSW Infrastructure has asserted strong legal grounds to challenge the demand, while industry observers note that the case could have wider implications for GST compliance in the infrastructure and port operations sector.
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