Hindustan Zinc Hit with ₹2.99 Crore Penalty and Tax Demand for FY 2017-18, Company Plans to Appeal

Udaipur, 15th November 2023 - Hindustan Zinc Limited, a subsidiary of the Vedanta Group, has been issued a hefty penalty of ₹2,99,37,101 by the Office of the Commissioner of Central Excise & CGST Commissionerate. This penalty stems from discrepancies in the tax payment on inward supplies under the Reverse Charge Mechanism during the financial year 2017-18.

The mining giant, known for its zinc, lead, and silver production, has announced its intention to contest the penalty through an appeal. The company, headquartered in Udaipur, Rajasthan, stated that it is evaluating all legal options to address this issue.

This development comes at a time when the company is already navigating through various market challenges, including fluctuating metal prices and regulatory compliance. Hindustan Zinc has been a significant contributor to India's metal industry, and this penalty adds to the list of regulatory hurdles it faces.

The company's decision to appeal reflects its commitment to resolving the matter within the legal framework, ensuring that its operations continue without long-term financial strain. The outcome of this appeal will be closely watched by industry observers and could set a precedent for similar cases involving tax disputes under the GST regime.