Kansai Nerolac Paints Limited has received a favorable order from the Joint Commissioner of State Tax (Appeal) in Ahmedabad, Gujarat. The company was granted partial relief in a tax appeal concerning Input Tax Credit (ITC) claimed for FY 2017-18. This resulted in a reduction of the penalty amount, with the final liability settled at ₹1,45,58,104/-. The company intends to file a further appeal against this order.
Tax Appeal Outcome
Kansai Nerolac Paints Limited has secured partial relief in a tax appeal case. The Joint Commissioner of State Tax (Appeal) in Ahmedabad, Gujarat, passed an order on 25th August, 2026, under Rules 113(1) and 115 of the CGST Rules, 2017. This ruling partially allowed the company’s appeal, leading to a reduction in the penalty amount from the original demand.
Reduced Financial Liability
The appeal specifically addressed issues related to the disallowance of Input Tax Credit (ITC) that Kansai Nerolac had claimed for the financial year 2017-18 in Gujarat. The appellate authority’s decision has reduced the penalty liability to ₹1,45,58,104/-. The company stated that it possesses relevant records and legal precedence to support its claim and has indicated its intention to pursue a further appeal before the GST Appellate Tribunal.
No Material Impact
Despite the tax matter, Kansai Nerolac has confirmed that there is no material impact on its financials, operations, or other activities as a result of this order. The company holds records and legal basis to prove its claim for the ITC.
Source: BSE
