New Delhi, Dec 2 InterGlobe Aviation, parent of IndiGo airlines, on Tuesday informed that it received a penalty order of around Rs 117.52 crore from the Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate.
The order which issued a penalty of Rs 1,17,52,86,402 relates to the denial of input tax credit for the financial years 2018–19 and 2021–22, the airline said in an exchange filing.
"The department has denied input tax credit (ITC) availed by the company and has issued a demand order along with penalty," the filing said.
"The company believes that the order passed by the authorities is erroneous. Further the company believes that it has a strong case on merits, backed by advice from external tax advisors," it further said.
Accordingly, the company will contest the same before the appropriate authority, it added.
InterGlobe Aviation added that the order does not have a significant impact on its financials, operations or other activities of the company.
"There is no significant impact on financials, operations or other activities of the Company," it added in its regulatory filing.
Interglobe Aviation Limited shares dipped by Rs 95 or 1.64 per cent in intra-day trading. The shares had opened almost flat at Rs 5,794.50 apiece.
The carrier on November 29 announced new direct routes and frequency additions from Navi Mumbai International Airport (NMIA), strengthening connectivity from the newly inaugurated gateway to key domestic destinations such as Coimbatore, Chennai, Vadodara and North Goa.
IndiGo earlier this week said it has completed the update on the mandatory Airbus system enhancement across its A320-family fleet after global flight operations disrupted due to a software issue in the Airbus A320 family of aircraft.
All 200 aircraft have now been fully updated and compliant as required, said the Indian carrier.
Meanwhile, earlier in the day, an IndiGo flight from Kuwait to Hyderabad was diverted to Mumbai after authorities at Hyderabad Airport received a bomb threat.
Official sources confirmed that the flight 6E-1234 was diverted midair after a threat message was received at the customer support at Rajiv Gandhi International Airport (RGIA) at 05.12 a.m.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor