Deepak Nitrite Ltd. Receives Order from GST Authorities Impacting Subsidiary
Deepak Nitrite Ltd. announced that the Commissioner (Appeal), CGST & Central Excise (Appeals), Vadodara, Gujarat, issued an order against Deepak Phenolics Limited (DPL), a wholly-owned subsidiary of the company, on March 6, 2026. The order, downloaded on March 31, 2026, pertains to the recovery of ineligible Input Tax Credit and imposition of a penalty.The GST Authorities rejected the appeal and upheld the order, resulting in a demand for recovery of ineligible Input Tax Credit of 21,53,47,980, along with applicable interest. Additionally, a penalty of 21,53,47,980 was imposed. The breakdown is as follows:
| Sr. No. | Details of events | Information of such event(s) |
|---|---|---|
| 1 | Name of Authority | Commissioner (Appeal), CGST & Central Excise (Appeals), Vadodara, Gujarat |
| 2 | Nature and details of action | Recovery of ineligible Input Tax Credit of 21,53,47,98 (CGST & SGST each 10,767,399) and imposition of a penalty of 21,53,47,98 (CGST & SGST each 10,767,399) under the CGST Act, 2017 and GGST Act, 2017. |
| 3 | Date of receipt | March 31, 2026 |
| 4 | Details of violation | DPL maintains that it has availed input tax credit in accordance with the applicable provisions of GST Laws and intends to pursue legal remedies, including an appeal against the order. |
| 5 | Impact | No material financial impact, except for the amounts detailed in point no. 2. |
According to the company, there will be no material financial impact beyond the amounts outlined. Deepak Nitrite Ltd. intends to pursue all available legal remedies.
Source:
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.