Lemon Tree Hotels Limited announced that in continuation to earlier disclosure made on the subject matter, this is to apprise that another unit based at Aurangabad has received order for recovery of Service Tax and penalties from Office of the Commissioner of Goods & Service Tax & Central Excise, Delhi under Section 73 (1) of Finance Act, 1994 read with Section 174(2) of the Central Goods and Services Tax Act, 2017 (CGST 2017). Name of the authority is Office of the commissioner of central goods & service Tax, Delhi south Commissionerate. Nature and details of the action(s) taken, initiated or order(s) passed:- Demand of service tax amounting to INR 42,16,003/- including applicable cess under provision of section 73(1) of the Finance Act, 1994 read with section 174(2) of CGST Act, 2017 for the period from October 2012 to March 2017; Demand and recovery of interest on the above amount under section 75 of the Finance Act; Imposing penalty and order for recovery of Penalty of INR 10,000 under section 77(2) of the Finance Act, 1994 and penalty amounting to INR 42,16,003/- under section 78(1) of the Finance Act, 1994.

Order(s) dated March 27, 2024, received by the company on April 5, 2024. Details of the violation(s)/contravention(s) committed or alleged to be committed: Not correctly assessing the service tax due on service charge, Recovery of short levied and short paid service tax under section 73(1) of the Finance act read with section 174(2) of the CGST Act, penalty under section 78 and 77 of the Fnance act read section 174 of the CGST Act, 2017.