DMCC Speciality Chemicals Receives Adverse Tax Order for Rs 1,05,98,933 on ITC
DMCC Speciality Chemicals Limited, formerly known as The Dharamsi Morarji Chemical Company Limited, has received an order from the Additional Commissioner (Appeals Raigad) concerning the admissibility of Input Tax Credit (ITC) on Works Contract Services. The order was dated April 27, 2026, and the details were received by the company on May 19, 2026.The development arose from an appeal filed by the Department against an Order-in-Original dated December 20, 2023, passed by the Assistant Commissioner, Division-III, CGST & Central Excise, Raigad Commissionerate. The department contended that the adjudicating authority had erred in dropping the demand related to inadmissible Input Tax Credit amounting to Rs.1,05,98,933/-.
The Additional Commissioner ruled that the ITC amounting to Rs.1,05,98,933/- is inadmissible under Section 17(5)(c) of the CGST Act, 2017. Consequently, the order-in-original was set aside, and the department ordered the recovery of Rs.1,05,98,933/- under Section 73 of the CGST Act, 2017, along with applicable interest and penalty.
In response to the ruling, the Company stated that it believes the demand is not maintainable and is currently in the process of preferring an appeal against the order. Despite the ruling, the company stated that, based on its assessment, the order has no material impact on the financials, operations, or other activities of the listed entity.
The details of the action taken are summarized below:
| Particulars | Details |
|---|---|
| Name of the Authority | Additional Commissioner (Appeals Raigad) |
| Nature of Action Taken | Appeal filed by the Department regarding the admissibility of ITC of Rs. 1,05,98,933/- on Works Contract Services under Section 17(5)(c) of the CGST Act, 2017. |
| Date of Order Receipt | Appeal order dated April 27, 2026, received on May 19, 2026. |
| Violation Details | The Additional Commissioner set aside the previous order, holding that ITC of Rs.1,05,98,933/- (Rupees One Crore Five Lakhs Ninety-Eight Thousand Nine Hundred Thirty-Three only) is inadmissible under Section 17(5)(c) of the CGST Act, 2017, and ordering its recovery under Section 73 of the CGST Act, 2017. |
| Financial Impact | The Company stated that the order has no material impact on the financials, operations, or other activities of the Company. |
DMCC Stock Price Movement
Today, DMCC SPECIALITY CHEMICALS LIMITED shares slipped by 4.39% to settle at ₹295.65 in post-market trading. The stock recorded a trading volume of 169,183 shares today.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.
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