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Sterlite Industries facing tax demand of Rs 324 cr

Press Trust of India  |  New Delhi 

Vedanta Group firm Sterlite Industries today disclosed that the excise department has slapped a tax notice of about Rs 324 crore on the company, and charged it with violating several rules.

However, the company claimed to have obtained a stay from the Madras High Court on both the counts.

"The Central Excise Department has issued a exparte notice for reversal of cenvat credit of Rs 315 crore, along with interest of Rs 8.78 crore for non-compliance of Rules 4 (5a) and 4 (6) of the cenvat credit rules, in respect of non- return of job work challans for the period March-September 2009 within the stipulated time," the company informed the Bombay Stock Exchange.

"In addition, the department has also alleged violation of advance licence conditions for the period 2005-2009," it added.

Sterlite, however, contended that it has obtained a stay order on the matter from the Madurai Bench of the Madras High Court.

"No showcause notice in this regard has been served on the company. The company has obtained a writ for stay on recoveries/further proceedings from the Madras High Court, Madurai Branch, in both the matters," the company said.

"The company has also been legally advised that the alleged charges are not legally sustainable and there is no financial liability on the company," it added.

Sterlite Industries is the flagship company of London- based Vedanta Resources Plc, led by NRI billionaire Anil Agarwal.

The metals and mining group has been accused of violating human rights and green norms at its facilities in Orissa. The company also proposes to mine bauxite at Orissa's Niyamgiri hills in a joint venture with Orissa Mining Corporation -- a move that is opposed by national and international NGOs, including Survival International.

The firm maintains that under the agreement, mining activities would be carried out by OMC, which owns the mining leases, and it will buy the mineral to run its alumina refinery in the state.

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First Published: Mon, July 26 2010. 18:09 IST