Sheela Foam Ltd, the maker of popular mattress brand Sleepwell, on Wednesday (October 4) said it received a Show Cause Cum Demand Notice from the Commissioner of GST Intelligence in Gautam Budh Nagar, Greater Noida.

Share Market Live

NSE

The notice, issued under section 16 of the Central Goods and Services Tax Act, 2017, on October 4, 2023, alleges a substantial tax demand of Rs 20.26 crore, coupled with an equivalent penalty of the same amount, in addition to applicable interest on the said demand.

The Show Cause Cum Demand Notice primarily centers on the purported erroneous availment of transitional input credit and other incorrect availment of input tax credit related to the Goods and Services Tax (GST). Sheela Foam is preparing to provide a formal response to this notice within the stipulated timelines.

Also Read: Tata Technologies IPO: Tata Motors shareholders to get 10% reservation. Details here

The notice calls upon the company to demonstrate why the GST amounting to Rs 20.26 crore should not be demanded and recovered under Section 16 of the Central Goods and Services Tax Act, 2017, alongside the imposition of a penalty amounting to Rs 20.26 crore, as well as the application of interest on the stated demand.

Sheela Foam has promptly engaged its tax advisors to navigate this matter, and based on their guidance, the company is preparing a comprehensive response in compliance with the prescribed timelines.

Shares of Sheela Foam Ltd ended at Rs 1,103.30, down by Rs 23.80, or 2.11 percent on the BSE.