Date: October 15, 2026

Legal & Regulatory Update

Refex Industries Limited has received a favorable Order-in-Appeal No. 232-234/COMM/BHO/GST/2026-27 dated October 13, 2026, from the Commissioner (Appeals), Central Goods & Service Tax & Central Excise, Bhopal (M.P.). The order was received by the company on October 15, 2026.

Background of the Case

The case originated from a Show Cause Notice No. 253/RZU/ADD/GST/2024 dated February 29, 2024, issued by the Directorate General of GST Intelligence (DGGI), Raipur Zonal Unit. The notice alleged that the company had wrongfully availed Input Tax Credit (ITC) amounting to ₹14,65,96,291 on the basis of invoices issued by certain suppliers alleged to be non-existent or fictitious. These transactions were related to coal and ash handling works executed for the period April 2018 to March 2021.

This led to an Order-in-Original No. 192/ADC/GST/DGGI/2024-25 dated March 27, 2025 (DRC-07 dated April 17, 2025) passed by the Additional Commissioner, Central Goods & Service Tax & Central Excise, Bhopal, which:

  • Confirmed the entire demand of ₹14,65,96,291
  • Applied applicable interest under Section 50 of the CGST Act, 2017
  • Imposed penalty of ₹14,65,96,291 under Section 74 read with Section 122(1)(vii) and 122(1)(x) of the CGST Act, 2017
  • Appropriated ₹5,86,92,809 already paid/reversed by the company under protest toward the demand

The company filed an appeal against this Order-in-Original before the Commissioner (Appeals), CGST & Central Excise, Bhopal, under Appeal ARN Nos. AD220625013791C, AD220625013750I and AD220625013716A, all dated June 24, 2025.

Outcome of the Appeal

The Commissioner (Appeals) has allowed the company's appeal and held that the demand, interest, and penalty confirmed under the Order-in-Original are not sustainable. The appellate authority found that the allegation was not sustainable on the facts and evidence on record.

Financial Impact

The Order-in-Appeal results in:

  • Vacation of the aggregate demand of tax and penalty totaling ₹29,31,92,582
  • Setting aside of associated interest with the demand
  • The sum of ₹5,86,92,809 earlier paid/reversed by the company under protest becomes eligible for refund/re-credit subject to applicable law and procedure

The order is not expected to have any material adverse impact on the financials, operations, or other activities of the company.

Additional Information

The Department retains a right of further appeal before the GST Appellate Tribunal (GSTAT), as and when constituted, within the time prescribed under Section 112 of the CGST Act, 2017.