Timeline of Events
- 31st January 2025: The company had previously informed the exchange about an Order-in-Original passed by the Additional Commissioner, CGST, Ahmedabad South, Ahmedabad.
- The company had subsequently preferred an appeal against this order before the Commissioner (Appeals), Central GST, Ahmedabad.
- 23rd June 2026: The Commissioner (Appeals) passed the Order-in-Appeal.
- 2nd July 2026: The company received the Order-in-Appeal.
Details of the Order-in-Appeal
The appeal filed by Purohit Construction Limited against the earlier Order-in-Original has been dismissed. The Order-in-Original has been upheld, which confirms:
- A GST demand of ₹2.08 Crores.
- An equivalent penalty of ₹2.08 Crores.
- This results in an aggregate financial liability of ₹4.16 Crores.
The demand pertains to the financial year 2017-18 and was raised on account of alleged wrongful availment of Input Tax Credit (ITC).
Company's Response and Impact Assessment
The company states it respectfully disagrees with the findings in the Order-in-Appeal. It is evaluating the order and shall explore further legal remedies available under law, including filing an appeal before the GST Appellate Tribunal, subject to legal advice.
Based on the company's assessment, it states that no material impact on its financials, operations, or other activities is presently envisaged.