Axel Polymers Limited has been served with a Show Cause Notice (SCN) by the Securities and Exchange Board of India (SEBI) regarding alleged wrongful availment of input tax credit (GST). The notice, dated 11.09.2026, pertains to adjudication proceedings initiated under the SEBI Act, 1995. The company stated that this development is not expected to impact its routine operations.
SEBI Issues Show Cause Notice to Axel Polymers
Axel Polymers Limited announced today that it has received a Show Cause Notice (SCN) from the Securities and Exchange Board of India (SEBI). The notice, bearing reference number SEBI/EAD3/MS/SM/DIS/23926/2026 and dated 11.09.2026, initiates adjudication proceedings against the company, its non-independent directors, and other individuals. This action is related to allegations of wrongful availment of input tax credit (GST).
Nature of Allegations and Proceedings
The SEBI notice has been issued under Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995, and stems from Section 151 of the SEBI Act, 1995. The core of the allegation pertains to the company’s input tax credit claims during the financial years 2021-22 to 2024-25. Specifically, it is alleged that the company wrongfully availed input tax credit without the physical receipt of inward supplies of goods and passed on such credit without actual supply of goods.
The Office of the Commissioner, Central GST & Central Excise, Vadodara-II, has indicated a proposed recovery of input tax credit amounting to ₹31.57 crore, along with applicable interest and penalties. SEBI’s investigation in this matter has been initiated.
Impact on Operations
Axel Polymers Limited has clarified that this development is not expected to have any impact on its routine operations. The company has pledged to keep the stock exchange informed of any further developments concerning this matter.
Details pertaining to the disclosure requirements under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are provided in Annexure A of the communication.
Source: BSE
