Prism Johnson Limited has announced a significant development in its ongoing tax litigation. The Commissioner (Appeals) CGST, Excise & Service Tax, Bhopal, has set aside a Goods and Service Tax demand of ₹22.70 Crores, including penalties, that was levied against the company and its employees. This order, dated September 3, 2026, resolves a dispute previously disclosed in August 2023 and has no adverse financial or operational impact on Prism Johnson.
Major Tax Dispute Resolved
Prism Johnson Limited has received a favorable order from the Commissioner (Appeals) CGST, Excise & Service Tax, Bhopal, regarding a substantial Goods and Service Tax (GST) demand. The appellate authority, in an order dated September 3, 2026, has entirely set aside the previously raised GST demand amounting to ₹22.70 Crores. This figure notably includes a penalty of ₹11.35 Crores.
Details of the Dispute
The dispute originated from an order passed by the Addl. Commissioner CGST & Central Excise, Jabalpur, which had confirmed the aforementioned GST demand. This litigation was originally disclosed by Prism Johnson on August 14, 2023, and was listed as Sr. No. 9 in Annexure 1 of that disclosure. The company and its employees, including the then Key Managerial Personnel, were parties to this appeal.
Impact on the Company
The ruling by the Commissioner (Appeals) marks a significant positive development for Prism Johnson. The order confirms that the entire Goods and Service Tax demand, along with all imposed penalties, has been nullified. Consequently, the company has stated that there is no adverse financial or operational impact resulting from this dispute, as the demand has been completely discharged by the appellate authority.
Source: BSE
