Prince Pipes and Fittings Limited Receives Demand Order for ₹31.12 Million
Prince Pipes and Fittings Limited announced on April 1, 2026, that it received a demand order in Form GST DRC-07 dated March 30, 2026, from the Office of Joint Commissioner, State Goods & Service taxes Department, Government of Rajasthan, Jaipur. The demand order pertains to the financial year 2019-20 and totals ₹31,12,290, comprising a tax demand of ₹10,10,484, interest of ₹10,91,322, and a penalty of ₹10,10,484.The order alleges that the company claimed ineligible input tax credit under Section 17(5) of the CGST/RGST Act. According to the company’s assessment, the demand is not maintainable, and it is evaluating the matter and will submit a reply within the prescribed time limit. Prince Pipes and Fittings Limited does not anticipate a significant impact on its financials, operations, or other activities as a result of this demand.
Summary of Demand Order Details:
| Sr. No | Particulars | Particulars |
|---|---|---|
| 1 | Name of the authority; | Office of the Joint Commissioner Jurisdiction: Circle- D, Jaipur, Zone-IV, Zonal Kar Bhavan, Jhalana, Jaipur, Rajasthan |
| 2 | Nature and details of the action(s) taken, or order(s) passed; | Demand Order in Form GST DRC-07 dated March 30, 2026, for FY 2019-20 for an aggregate amount of ₹ 31,12,290/- (which includes tax demand of ₹ 10,10,484, Interest of ₹ 10,91,322 and Penalty of ₹ 10,10,484) |
| 3 | Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority; | March 31, 2026 |
| 4 | Details of the violation(s)/ contravention(s) committed or alleged to be committed; | Demand Notice has been issued by GST Authority u/s 74 of the CGST/RGST Act 2017 for Financial Year 2019-20 on the allegations of claim of certain ineligible input tax credit u/s 17(5) of the CGST/RGST Act. |
| 5 | Impact on financial, operation or other activities of the Company, quantifiable in monetary terms to the extent possible; | Based on Company's assessment, the aforesaid demand is not maintainable and the Company is evaluating this matter and will submit its reply within the prescribed time limit. The Company did not envisage any relevant impact on financials, operations or other activities of the Company. |
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