Flair Writing Industries Limited (FWIL) disclosed today that it has received two show cause notices from the Office of the Assistant Commissioner of State Tax, Valsad, regarding excess input tax credit (ITC) claims for the fiscal year 2020-21. The notices, issued under Section 73 of the CGST Act, allege tax discrepancies totaling approximately ₹1.86 crore.
The shares of Flair Writing Industries Limited (FWIL) were trading at ₹291.70 up by ₹8.70 or 3.07 per cent on the NSE today at 3.25 pm.
The first notice claims ₹1,84,13,322 in tax, interest, and penalties, while the second notice for ₹1,51,946 was issued to Flair Distributor Private Limited, which merged with FWIL in February 2023. FWIL stated it would challenge the notices based on “strong merits” and does not anticipate any material impact on its financials or operations.
FWIL’s management asserts that the potential impact will be limited to the final tax liability, including interest and penalties, as determined by the authorities.