Key Developments
(a) Passing of Order-in-Original
The State Tax Officer/Assistant Commissioner, State Tax, Mobile Squad, Roorkee, Uttarakhand passed Order No. ZD0509260176084 dated September 20, 2026. The order rejected ZNShine Solarworld Private Limited's written reply and confirmed a penalty of ₹1,22,12,498 (Rupees One Crore Twenty-Two Lakhs Twelve Thousand Four Hundred and Ninety-Eight only) under Section 129 of the CGST/UKGST Act, 2017 without granting any relief.
(b) Filing of Appeal
The subsidiary filed an appeal dated September 21, 2026, in FORM GST APL-01 before the Joint Commissioner (Appeals) - the applicable Appellate Authority under Section 107 of the CGST/UKGST Act, 2017. The appeal prays for setting aside the order and quashing/deletion of the entire penalty of ₹1,22,12,498. No amount stands admitted as payable by the subsidiary, and the entire penalty amount remains under dispute. A mandatory pre-deposit amount of ₹12,21,250 was paid. The appeal is pending adjudication with a personal hearing scheduled on September 22, 2026.
Details of Dispute
The penalty order was issued pursuant to Show Cause Notice dated September 17, 2026, issued under Section 129 of the CGST/UKGST Act, 2017. The matter concerns a consignment of imported Solar Cells (HSN 85414200) covered by Bill of Entry No. 3595328 dated September 5, 2026.
Financial Implications
- Penalty confirmed: ₹1,22,12,498\
- Amount admitted as payable: NIL\
- Amount under dispute: ₹1,22,12,498 (entirely penalty; no tax/cess demanded)\
- Pre-deposit amount paid: ₹12,21,250\
The company states that this development does not have any material impact on the financial, operational or other activities of the company, as the confirmed penalty does not represent a crystallised or admitted liability and continues to be contested.
Date and Time of Event
September 21, 2026 at 2:40 p.m. (IST), being the date and time of filing of the appeal.
Additional Information
The information will be made available on the company's website at https://worldsolar.in/.