The company had deposited and created provision for "National Calamity Contingent Duty" (NCCD) including applicable cess in its Haridwar plant during prior years, while contesting the same on the ground that NCCD is in nature of excise duty and should be covered by area-based exemption.
Pursuant to favourable order from the Supreme Court, the provision has been reversed as exceptional item in the current quarter and necessary refund applications already filed with the department, the company said.
"The overall economic and customer sentiments continued to be soft during the first quarter of this fiscal and their impact is clearly visible in the performance of the auto sector," Hero MotoCorp
Chief Financial Officer Niranjan Gupta said.
The outlook for the rest of the year will be dependent on multiple factors, including the progress of monsoon and festive season offtake, as well as improvement in liquidity, he added.
Given the dependence of multiple sectors and millions of jobs on auto industry, it is imperative for the government to take urgent steps to boost consumption, Gupta said.
"We would, therefore, reiterate our appeal to the government to bring down GST on two-wheelers to 18 per cent from the current level of 28 per cent, in order to provide the much-needed relief to the sector," he added.
A reduction in GST will lower the cost of two-wheelers and spur demand, with the consequent growth in volumes offsetting any impact on the government revenue, Gupta said.
Shares of Hero MotoCorp
on Tuesday ended 6.01 per cent lower at Rs 2,259.35 apiece on the BSE.