Gujarat government's tax department has slapped a demand of Rs 178.79 crore on Welspun Corp for two financial years -- 2009-10 and 2010-11, the company said in a regulatory filing.
Welspun Corp, flagship firm of Welspun Group, said it will appeal against the tax demand at the appropriate judicial forums.
"The company has received orders along with demand from the Joint Commissioner (Appeal) - GVAT, Rajkot for the financial years 2009-2010 and 2010-2011 for an amount of Rs 178.79 crore which includes tax amount of Rs 46.78 crore and interest and penalty amount of Rs 132.01 crore," Welspun Corp said in the filing.
Based on the past precedents, the company believes that it has a reasonably good case on merits, it added.
"We would contest these demand notices at the appropriate judicial forums," it said.
Welspun Corp is among the largest welded line pipe manufacturing companies in the world.