Key Quantitative Figures

  • Original Tax Demand: ₹1,71,87,505 (Rupees One Crore Seventy-One Lakh Eighty-Seven Thousand Five Hundred and Five only)
  • Equivalent Penalty: ₹1,71,87,505
  • Total Demand: Approximately ₹3,43,75,010 (excluding applicable interest)
  • Mandatory Pre-deposit Paid: ₹17,18,753 (under Section 107(6) of CGST Act, 2017)

Timeline of Events

  • DGARM Report Date: July 18, 2022
  • Show Cause Notice Date: June 30, 2025
  • Order-in-Original Date: December 10, 2025 (No. 17/CGST/Div-VI/2025-26)
  • Appeal Filing Date: March 9, 2026
  • Order-in-Appeal Date: October 19, 2026 (No. GZB/CGST/000/APPL-MRT/GZB/932/2026-27)
  • GST Portal Upload Date: November 2, 2026

Parties Involved

  • Adjudicating Authority: Assistant Commissioner, CGST, Division-VI, Ghaziabad
  • Appellate Authority: Additional Commissioner, Central Goods and Services Tax (Appeals), Meerut
  • Regulatory References: SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026

Legal Basis of Proceedings

The proceedings originated from discrepancies identified in:

  • Input Tax Credit (ITC) claimed in Form GSTR-3B versus Form GSTR-2A
  • Discrepancies in Form GSTR-9
  • Assessment Period: Financial years 2018-19 to 2020-21
  • Legal Framework: Section 74 of CGST Act, 2017 (pertaining to fraud, wilful misstatement, or suppression of facts)

Appellate Outcome

The Appellate Authority allowed the company's appeal based on two key findings:

1. The Department failed to establish fraud, wilful misstatement or suppression of facts with intent to evade tax as required under Section 74 of CGST Act, 2017

2. The proceedings were barred by limitation under Section 73 of CGST Act, 2017

Financial Impact

The favorable order provides complete relief to the company against:

  • Tax demand of ₹1,71,87,505
  • Equivalent penalty of ₹1,71,87,505
  • All applicable consequential interest

Previous Disclosure Status

The GST proceedings were previously disclosed in the Company's Prospectus dated August 12, 2026, filed with SEBI, stock exchange(s) and Registrar of Companies under the section relating to outstanding litigation and legal proceedings.

Additional Information

  • The proceedings pertain only to the company and not against any Key Managerial Personnel, promoter or ultimate person in control
  • The mandatory pre-deposit of ₹17,18,753 remains with the authorities despite the favorable outcome
  • The disclosure complies with SEBI LODR requirements and includes Annexure I with detailed disclosures