Hindustan Zinc Faces ₹2.99 Crore Penalty, Plans to Appeal

New Delhi, [Date] - Hindustan Zinc Limited, a subsidiary of Vedanta Group, has been slapped with a penalty of ₹2,99,37,101 by the Office of the Commissioner of Central Excise & CGST Commissionerate. The penalty relates to discrepancies in tax payments on inward supplies under the Reverse Charge Mechanism during the financial year 2017-18.

The company, which is one of the leading zinc and lead producers globally, has announced its intention to appeal against the penalty. This decision comes as part of Hindustan Zinc's efforts to address what it considers to be an erroneous assessment of its tax obligations.

This development has raised concerns among investors and stakeholders regarding the potential financial implications and the ongoing scrutiny by tax authorities. Industry analysts suggest that while the immediate financial impact might be minimal, the long-term effects on Hindustan Zinc's operations and compliance costs could be significant.

Hindustan Zinc Limited has stated that it will continue to comply with all statutory requirements and will work towards resolving the issue through the appellate process. The company's shares experienced a slight dip following the news, reflecting investor caution amid these regulatory challenges.