Key Quantitative Figures

  • Total GST demand confirmed: ₹3,29,83,282
  • Total penalty confirmed: ₹14,78,606
  • Original demand from April 2024: ₹1,47,86,059 + ₹14,78,606 penalty
  • Additional demand from department's appeal: ₹1,81,97,223
  • Period covered: Financial Year 2018-19 (April 2018 to March 2019)

Chronology of Events

  • April 11, 2024: Company initially informed exchanges about receiving GST demand order from Additional Commissioner, Customs & Central Tax, Hyderabad GST Commissionerate
  • September 1, 2026 at 6:32 p.m.: Received first appellate order from Commissioner of Customs & Central Tax (Appeals-I), Hyderabad
  • September 2, 2026 at 12:52 p.m.: Received second appellate order from same authority

Details of Orders Received

Order dated September 1, 2026:

  • Allowed the appeal filed by the tax department
  • Overturned the relief of tax demand of ₹1,81,97,223 that was previously granted to the company
  • Relief was originally granted on grounds of input tax credit eligibility

Order dated September 2, 2026:

  • Rejected the appeal filed by the company
  • Confirmed the original GST demand of ₹1,47,86,059 and penalty of ₹14,78,606
  • Demand confirmed on two grounds:

1. Computation of input tax credit eligible to the company

2. Alleged undischarged tax liability due to differences between returns filed by the company

Financial Impact Assessment

  • The company states "No Financial impact at this stage" for both orders
  • The total demand including interest and penalty liability is acknowledged but not quantified beyond the stated amounts
  • The company will pursue further legal options before any payment obligation arises

Legal Status and Next Steps

  • The company will pursue an appeal and evaluate other legal options against both orders
  • Specifically mentioned filing of writ petition as potential next step
  • The matter remains subject to further legal proceedings

Authority Details

  • Issuing authority: Commissioner of Customs & Central Tax (Appeals-I), Hyderabad
  • Legal basis: Section 107 of the CGST/Telangana Goods and Services Tax Act, 2017

#ICICI Lombard #GSTDispute #SEBIDisclosure #RegulatoryCompliance #TaxMatter #Negative