Shares of Patanjali Foods Ltd slipped 4% on 30 April after the GST intelligence department sent Patanjali Foods a show cause notice, asking the company to explain why it should not be entitled to a Rs 27.46 crore input tax credit.

The notification was received by the Patanjali Ayurved Group, which is primarily involved in the edible oil business and is led by yoga guru Ramdev, from the Directorate General of GST Intelligence, Chandigarh Zonal Unit, according to the company’s 26 April regulatory filing.

“A show cause notice is received by the company, requiring the company, its officers and authorised signatories to show cause as to why input tax credit amounting to Rs 27,46,14,343 should not be recovered (along with interest), and why penalty should not be imposed,” the company said.

In connection with Section 74 and other relevant provisions of the Uttarakhand State Goods and Services Act, 2017 and the Central Goods and Services Act, 2017, the department has referenced Section 20 of the Integrated Goods and Services Tax (IGST) Act, 2017.

“As of now the authority has only issued a show cause notice and the company will be taking all necessary action to defend its case before the authority,” Patanjali Foods said.

The non-food company owned by the promoter group Patanjali Ayurved is up for grabs, and Patanjali Foods said last week that it will evaluate the offer.

According to a regulatory filing, the board of Patanjali Foods has reviewed the initial offer that it received from Patanjali Ayurved Ltd to purchase the latter’s non-food business venture.

At 2:12 pm, the shares of Patanjali Foods were trading 3.75% lower at Rs 1,504.90 on NSE.