Non-Filing of Form MSME-1: MCA imposes Penalty of Rs. 11.67 L on Samsung R&D [Read Order]
MCA slams Samsung with Rs. 11.67 Lakh Penalty for non-filing of MSME-1
Registrar of Companies – penalty on Samsung R&D – Samsung Research and Development Wing – MCA – Samsung India Bangalore – Form MSME 1 – taxscan
Registrar of Companies – penalty on Samsung R&D – Samsung Research and Development Wing – MCA – Samsung India Bangalore – Form MSME 1 – taxscan
The Registrar of Companies (RoC) at the Ministry of Corporate Affairs (MCA) has imposed a penalty on Rs. 11.67 Lakhs on Samsung’s Research and Development Wing - India Bangalore for non-filing of Form MSME-1.
The company had voluntarily submitted an adjudication application on 25.08.2023, acknowledging that it failed to provide complete disclosures of specific transactions in Form MSME I for the periods April 2022 to September 2022 and October 2022 to March 2023 within the prescribed time limit.
The delay was attributed to an unintentional oversight stemming from an internal clerical error. The company rectified this by belatedly disclosing the required details through MSME Forms I filed on 25.07.2023 for both periods.
As per Section 405(1) of Chapter XXV of the Act, the Central Government may order companies to furnish information about their constitution or working within specified timelines. The Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019, mandates specified companies to file returns using MSME Form I by specific deadlines.
Under Section 405(4) of the Act, failure to comply with orders or providing incorrect or incomplete information may result in penalties. Pursuant to the adjudication application, a notice of hearing was sent on 18.09.2023, and a physical hearing was conducted on 27.09.2023. Mr. Jayaram Korikkar, a practicing company secretary, represented the company and directors during the hearing.
MCA records reveal that the company, being a subsidiary, doesn't qualify as a small company as per Section 2(85) of the Act. Consequently, the provisions for imposing a lesser penalty under Section 4468 of the Act do not apply.
Considering the facts and submissions, in accordance with Section 454(3)(a) of the Companies Act 2013, a penalty was imposed on the company and defaulting directors/key managerial personnel. The penalty amount must be paid within 90 days from the order date via Form INC-28, accompanied by a copy of the order and payment challans. Directors must pay penalties from their own funds, the order noted.
An appeal against this order can be filed with the Regional Director (South East Region), Hyderabad, within 60 days. Non-compliance may result in penal action under Section 454(8)(i) and (ii) of the Companies Act, 2013.
The company is obligated to serve a copy of this order on the mentioned defaulting directors/officers as per Section 20 of the Companies Act, 2013.
To Read the full text of the Order CLICK HERE
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