This is a regulatory disclosure filed with the BSE pursuant to SEBI LODR Regulations, specifically Regulation 30, and in accordance with the SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.
Nature of the Event
The company has received an Order-in-Original from a GST authority, which is a follow-up to a Show Cause Notice disclosed on March 26, 2026.
Details of the Order
- Issuing Authority: The Additional Commissioner, Central GST and Central Excise, Surat Commissionerate.
- Order Reference: Order-in-Original dated October 23, 2026, bearing Order No. SURAT/GST/ABS/52/2026-27.
- Date of Receipt: The order was received by the company via email on October 25, 2026.
- Nature of the Order: The order imposes a penalty on the company under Section 122(1)(ii) of the CGST Act, 2017, read with the corresponding provisions of the SGST Act, UTGST Act, and IGST Act.
- Alleged Contravention: The order relates to the alleged passing on of ineligible Input Tax Credit (ITC) during the period from April 2023 to March 2025 (Financial Years 2023-24 and 2024-25).
Financial Impact
The order imposes a quantifiable penalty of ₹5,50,44,402 (Rupees Five Crore Fifty Lakh Forty-Four Thousand Four Hundred and Two only) on the company.
Company's Response and Next Steps
The company states that it is currently in the process of examining the contents of the order. The disclosure explicitly states the company's intention to file an appeal against this order before the appropriate appellate authority, in accordance with applicable laws.
Compliance and Dissemination
This information has been disclosed in compliance with SEBI Listing Regulations (Regulation 30 and Regulation 46). The information has also been hosted on the company's website at www.shahlon.com.