Key Quantitative Figures

  • Total Tax Demand: ₹2,13,60,504 (₹76,06,772 for FY 2022-23 + ₹1,37,53,732 for FY 2023-24)
  • Total Penalty: ₹21,36,049 (₹7,60,676 for FY 2022-23 + ₹13,75,373 for FY 2023-24)
  • Grand Total: ₹2,34,96,553

Dates of Action

  • Notice Date: May 20, 2026 (Form GST DRC - 01)
  • Receipt Date: May 20, 2026 at 10:39 am IST
  • Response Deadline: June 9, 2026 (for filing objections/representations and personal hearing)

Parties Involved

  • Issuing Authority: Assistant Commissioner Hosur (South) - I Krishnagiri, Commercial Taxes Department of Tamil Nadu
  • Compliance Officer: Prasad Rajendra Chavan, Company Secretary and Compliance Officer

Details of Allegations/Violations

For Financial Years 2022-23 and 2023-24:

1. Short payment of tax under Reverse Charge Mechanism (RCM) - Both FYs

2. Reversal of Output Tax on Credit - Both FYs

3. Excess Input tax credit availed - Both FYs

4. Penalty for violation of Rule 138 - Only FY 2022-23 (Not applicable for FY 2023-24)

Financial Impact Assessment

Based on the Company's assessment, prevailing law, and advice of tax advisors, the Company does not expect the said notices to have any material financial impact on the Company.

Company Response

The Company will file objections/representations and avail a personal hearing at the office of the Assistant Commissioner, Hosur (South) - I Circle on or before June 9, 2026.