Order Details

  • Date of Order Receipt: July 28, 2026
  • Issuing Authority: Additional Commissioner (Appeals), CT and GST, Cuttack
  • Governing Legislation: Odisha Value Added Tax Act, 2004 (OVAT Act)
  • Nature of Dispute: Disallowance of input tax credit claimed on capital goods and certain other items

Specific Allegations and Amounts

  • Alleged Excess ITC Utilized: Rs. 5,69,02,242 (as per Section 20 of OVAT Act)
  • Penalty Imposed: Rs. 11,38,04,484 (under Section 45(2) of OVAT Act, calculated as twice the disputed ITC amount)
  • Total Potential Liability: Rs. 17,07,06,726

Financial Impact Assessment

  • The order is appealable, therefore tax and penalty amounts are not currently payable
  • No immediate financial impact as of the disclosure date
  • For filing an appeal, a pre-deposit of 10% of the disputed tax amount is required
  • Pre-deposit Amount: Rs. 56,90,224
  • The pre-deposit amount will be refundable if a favorable order is passed in the appeal

Company Response

  • The Company is evaluating the order
  • Will take necessary action including filing an appeal as considered appropriate
  • Company states the amounts involved are not material
  • No material impact expected on financial, operational or other activities of the Company