Key Event

Pursuant to the amalgamation, all assets, liabilities, rights, obligations and pending litigations of DFPL have vested in and stand transferred to Pitti Engineering Limited effective 23rd September 2026.

Details of Transferred Litigations

Litigation 1:

  • Authority: First Appellate Authority, Commissioner of Central Tax (Appeals), Bengaluru
  • Nature: Contesting order dated 22nd November 2025 passed by Joint Commissioner of Central Tax, Bengaluru
  • Period: Financial Years 2018-19 to 2022-23
  • Issue: Related to ITC availed
  • Demand Amount: Tax of ₹3.09 crores along with applicable interest and equivalent penalty
  • Current Status: Appeal pending adjudication; detailed submissions filed; matter awaiting further proceedings

Litigation 2:

  • Authority: First Appellate Authority, Commissioner of Central Tax (Appeals), Bengaluru
  • Nature: Contesting order dated 11th November 2025 passed by Superintendent of Central Tax, Bengaluru
  • Period: Financial Years 2018-19 to 2022-23
  • Issue: Related to ITC, interest, penalties and alleged RCM short-payment
  • Demand Amount: Tax of ₹0.01 crore, along with applicable interest and equivalent penalty
  • Total Exposure: ₹4.91 crore along with applicable interest and equivalent penalty
  • Company Assessment: Believes demand is not sustainable and expects favorable outcome
  • Financial Impact: Not expected to have any material impact on financial position or operations
  • Accounting Treatment: Disclosed as contingent liability in Consolidated Financial Statements

Litigation 3:

  • Authority: First Appellate Authority, Commissioner of Central Tax (Appeals), Bengaluru
  • Nature: Contesting order dated 31st October 2025 passed by Asst Commissioner of Central Tax, Bengaluru
  • Period: Financial Years 2018-19 to 2022-23
  • Issue: Related to ITC reversal, short payment of GST and wrong availing of GST
  • Demand Amount: Tax of ₹1.81 crore, along with applicable interest and equivalent penalty

Overall Financial Implications

Total tax demands across three litigations: ₹4.91 crore (excluding interest and penalties)

The company has assessed that the demands are not sustainable and expects favorable outcomes, with no material financial impact anticipated.