New Delhi: IndiGo on Tuesday said it has been slapped with a penalty of Rs 117.52 crore related to input tax credit, and the airline will challenge the ruling, PTI reported.
The penalty has been imposed on the airline by the Joint Commissioner of Central Tax and Central Excise, CGST Kochi Commissionerate, Kerala.
According to a regulatory filing, the fine is related to the period 2018-19 to 2021-22. "The department has denied input tax credit (ITC) availed by the company and has issued a demand order along with a penalty.
"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," the filing said.
Further, the airline said it would contest the same before the appropriate authority and that there was no significant impact on its financials, operations or other activities.
Shares of the company fell 1.60 per cent to close at Rs 5,697.70 apiece. Meanwhile, IndiGo has completed the mandatory Airbus system software enhancement on its entire fleet of 200 A320-family aircraft, making all of them compliant with the configuration ordered after a global safety directive. The airline said its engineering and operations teams coordinated the upgrades aircraft by aircraft, allowing it to finish the programme with no flight cancellations and only minimal disruption to passengers.
With the work completed, IndiGo said every A320-family aircraft in its fleet is now operating with the latest approved software, and that performance will continue to be tracked as part of routine safety checks. The directive followed an order by the European Union Aviation Safety Agency (EASA) for a global software upgrade on Airbus A320-family jets after a vulnerability was identified in certain Elevator and Aileron Computer (ELAC) units.