Senco Gold Limited informed that the company has received an order from the office of The Assistant Commissioner, CGST & CX, Burrabazar Division, Kolkata North CGST & CX Commissionerate, raising a demand of Service Tax along with interest & penalty of INR 2,270,629, under Sections 73(1), 75 & 78 of Finance Act, 1994 (as amended) read with Section 174 of the CGST Act, 2017. The Order-in-Original was passed due to non-submission of certain documents in respect of Job work done at SEZ unit which was exempted from payment of Service Tax during Fiscal Year 2015-16. Date of receipt of the order is June 18, 2024.

Details of the violation(s)/contravention(s) committed or alleged to be committed. The Order-in-Original was passed due to non- submission of supporting documents [like BRC, Bill of entry etc.] in respect of Job work done at SEZ unit which was exempted from payment of Service Tax during Fiscal Year 2015-16. The demand has been mentioned in the Order as follows:- Demand of Service Tax of INR 754,643 u/s 73(1) and Interest of 754,643 u/s 75 of the Finance Act 1994 read with section 174 of CGST Act 2017.

Penalty of INR 754,643 u/s 78 of the Finance Act 1994, read with section 174 of CGST Act 2017. Late fees of INR 6,700 u/s 70 of the Finance Act 1994. The Company will challenge the Order and file an appeal before Commissioner Appeal-1, Kolkata within due course.

Since Job work income received from SEZ unit was exempted from service tax, the question of raising demand including interest liability and penalty does not arise. Only due to non-submission of certain documents which leads to raise demand of INR 2,270,629, will not be maintainable at all. However, the Company has not received any instruction to produce such documents before the Authority in writing.

There is no impact on financial, operation or other activities of the company due to this Order.