Key Quantitative Figures
The Order-in-Original, dated 30th October 2026 and received by the company on 8th November 2026, confirms the following financial demands:
- Differential Tax Demand: ₹1,54,34,022 (CGST: ₹77,17,011 and MGST: ₹77,17,011)
- Penalty Imposed: ₹15,43,402 (₹7,71,701 under CGST Act and ₹7,71,701 under MGST Act)
- Total Quantified Demand (excluding interest): ₹1,69,77,424
- Interest: Applicable interest under Section 50(1) of the CGST Act, 2017 and corresponding MGST Act provisions; the amount is not quantified in the order.
Dates of Action
- Date of Order: 30th October 2026
- Date of Receipt by Company: 8th November 2026
- Date of Intimation to Exchanges: 9th November 2026
- Financial Year in Question: 2022-23
Parties Involved
- Issuing Authority: Dr. Anjum A Tadvi, Assistant Commissioner, CGST & Central Excise, Nashik-I Division, Nashik.
- Recipient: Sula Vineyards Limited.
Purpose / Stated Rationale
The order was issued under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) and Section 73 of the Maharashtra Goods and Services Tax Act, 2017 (MGST Act).
Details of Alleged Violation
The authority alleges that for FY 2022-23, the company discharged GST at 5% on restaurant services provided under 'RASA' and 'Tasting Room' at its Nashik vineyard. The authority contends these services were supplied at 'specified premises' and were liable to GST at 18% (9% CGST + 9% MGST). This results in an alleged short-payment of tax at a differential rate of 13%.
Financial / Operational Impact
As per the company's disclosure:
- The quantified demand (tax + penalty) is ₹1,69,77,424, excluding unquantified interest.
- The company states this amount "neither have any material impact on the financials of the Company nor have any impact on operational or other activity of the Company."
Company's Response and Action Taken
The company disagrees with the findings and levy in the order. It is in the process of pursuing appropriate appellate remedies and will file an appeal before the appellate authority. It expects a favorable outcome at a higher forum.
Capital Structure Impact
No impact on the capital structure is mentioned in the disclosure.
Cash Flow Implications
A potential cash outflow exists if the demand is upheld upon appeal. The company has not made any provisions disclosed in this filing.
Forward-Looking Commentary
The company has provided forward-looking commentary regarding its legal strategy: "The Company... would be filing an appeal... and expects a favorable outcome at the higher forum."