Our Correspondent
BHUBANESWAR: A section of media reports said, after Orissa High Court and Supreme Court declined to grant relief, the Sajjan Jindal led JSW Steel, has moved the Appellate authority within GST department of Odisha against the demand notice of ₹2,678 Crore towards tax, penalty and interest on JSW mining company in the State.
According to media reports, the company had started mining operation at Nuagoan, Jajang, Koira and Ganua mines, for which lease was granted by the State government, by paying applicable bid premium, royalty and other statutory fees in addition to ₹1,510 Crore towards GST on Reverse Charge Mechanism basis.
In March, the GST wing of Odisha had raised objection claiming revenue loss and issued demand notice of ₹2,678 crore including interest and penalty on JSW Steel, Barbil and pay the same within one month of issue of the order, it said.
JSW Steel had moved the Odisha HC and subsequently Supreme Court seeking interim relief, but was directed to move the GST department without offering any relief.
As per the provisions of GST law, JSW Steel was eligible to avail ITC of ₹1,510 crore towards payment of output tax liability. The company utilised ₹271 crore for discharging output tax liability on actual supply of iron ore.
The remaining unutilised ITC of ₹1,239 crore was transferred to parent company in Mumbai for support service and subsequently distributed it to other units of JSW Steel located in different states for their utilisation.
It may be noted here that, weeks back, BJP MP from Bhubaneswar, Aparajita Sarangi, had alleged large scale irregularities in JSW Steel runs Mines in Odisha. Citing examples of Gonua iron ore block held by Sajjan Jindal’s JSW Steel, BJP MP Sarangi had said 94 per cent of ore mined from the block in 2019-20 was 62 to 65 pc Fe grade. Post auction of the block (before its lease expired by March 2020), the share of lumps in the overall production fell from 37 pc to nil in 2021-22 and 62-65 pc Fe grade declined from 94 pc to 9 pc. This means the entire production was shown as low grade ore (fine) of 47 pc Fe, she said. Iron ore production from the mine jumped from 6.7 lakh tonne in 2019-2020 to 11.7 lakh tonne in 2021-22.
“The modus operandi is simple. High grade iron ore in the 62-65 per cent Fe category is shown as low grade ore (below 58 per cent Fe) to depress the average sale price (ASP) determined by Indian Bureau of Mines and higher volume of ore is exported claiming exemption of export duty,” the MP had said. The State government is losing Rs 6,199 per tonne of lumps of 65 per cent and above grade if it is shown at below 55 per cent Fe. In case of fines, the loss is Rs 3,550 a ton.
