The Central Excise department has slapped a notice on infrastructure major Larsen and Toubro (L&T) for alleged non-payment of excise duty of Rs 160 crore, a demand that the company said it is contesting.
“We have issued a notice to L&T,” confirmed a source.
“The matter is under dispute and we are contesting the demand. All companies receive similar notice from time-to-time and we are suitably responding to the department,” L&T spokesperson said.
Sources said that allegedly parts of heavy earth moving vehicles were imported by L&T through M/s Komatsu India Pvt Ltd and the duty has been charged in lieu of it.
L&T allegedly cleared the goods without payment of duty and registration under central excise, they said, adding that it cleared a substantial quantity of these parts and removed them from the factory without payment of duty.