Schneider Electric Infrastructure Limited Receives Appeal Order on GST Credit Dispute, Liability Stands on Key Tax Amounts
Schneider Electric Infrastructure Limited (SEIL) has received an appeal order from the Commissioner, CGST (Appeals), Noida, concerning the wrongful availment and transition of ineligible CENVAT credit and transitional credits related to hotel booking facilitation services. The order, dated July 29, 2026, addresses proceedings initiated regarding the misuse of Input Tax Credit in TRAN-1 for the financial year 2017-18.The dispute stemmed from a demand notice regarding the wrong availment of excess Input Tax credit in TRANS1. The original contention covered the use of transitional credits related to Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess through TRAN-1 under Section 140 of the CGST Act, 2017. It also addressed input tax credit pertaining to hotel booking facilitation services that lacked evidence of business nexus.
According to the appellate authority’s order (No. NOI-CGST-001-APPL-324-2026-27), which was received by the company on July 30, 2026, the appeal was partly allowed and upheld specific demands.
Key outcomes of the Appeal Order are as follows:
| Aspect | Original Demand/Issue | Appellate Outcome (Order dated 29.07.2026) | Amount Involved |
|---|---|---|---|
| Transit Invoices | Wrongful availment linked to invoices recorded on 31.07.2017 | Demand set aside | INR 2,83,584/- |
| CENVAT Transition Credit | Uneligible Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess under GST | Demand upheld | INR 9,57,641/- |
| Hotel Booking Services | Input tax credit lacked evidence of business nexus | Demand upheld | INR 2,58,549/- |
The appellate authority confirmed the demands related to transitional credits for Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess, and input tax credit concerning hotel booking facilitation services. Consequently, a penalty was revised and imposed at INR 12,16,190/ under Sections 122 and 74 of the CGST Act, 2017.
The company stated that there is no material impact on its financial, operations or other routine business activities, with the impact limited solely to the extent of liability as defined by the Appeal Order.
SCHNEIDER Stock Price Movement
Schneider Electric Infrastructure Limited shares closed today after edging higher by 1.65%, settling at ₹1298.4. The stock saw a traded volume of 382,226 shares during the session.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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