Mumbai, April 6: Mahindra & Mahindra (M&M) and Aztec Software have been served payment claims by the excise and income tax departments, respectively.

While the excise department has asked M&M to make a payment of over Rs 300 crore, Aztec Software has been served a tax notice of Rs 9.15 crore. Both companies today informed the stock exchanges that they will appeal against these claims.

M&M has been asked by the central excise commissioner (adjudication) in Mumbai to pay Rs 216.03 crore as differential duty and Rs 88.08 crore as penalty under the Central Excise Act.

This is primarily because of its dispute with the excise department during 1991-96 regarding the classification of the Commander range of vehicles as 10-seater under the Central Excise Tariff Entry 8702. The company said while this classification was prima facie accepted by the jurisdictional authorities, the excise department subsequently disputed the classification on the ground that the 10-seater criterion was not met under the Motor Vehicles Act and Rules and demanded differential duty.

?The department?s stand of classifying Commander under the Tariff Entry 8703 attracting a higher rate of excise duty was challenged by the company by writ petitions before Bombay High Court. The court unconditionally stayed further proceedings in April 1993,? it said.

Recently, the high court remanded these matters to the excise authorities for adjudication and the company has now been served the order, it said.

?The company feels that the excise demand is unsustainable as it is contrary to the findings of two excise commissioners and the certificate issued by the Automotive Research Association of India, an independent certifying agency,? M&M said, adding that it would be contesting the issue before the appropriate forum.

The news saw M&M shares slipping from an intra-day high of Rs 494 to Rs 474.70 on BSE today. The scrip closed at Rs 480.45, down from Rs 487.70 on Tuesday.

On the other hand, Aztec Software has received a notice from the income tax authorities for a payment of Rs 9.15 crore as taxes due to the adjustments made to the company?s transfer pricing for 2001-02. Aztec will approach the commissioner (appeals), the first appellate authority.