Bharat Heavy Electricals Limited (BHEL) received an adjudication order concerning FY2021-22. The order dropped a substantial demand of ₹183.77 Cr, along with associated interest and penalties. The remaining balance demand is ₹1.43 Cr. BHEL intends to file an appeal against the balance demand before the Appellate Authorities, maintaining that the case is strong on its merits.
Adjudication Order Details
BHEL has received an adjudication order related to Section 73 of the CGST Act/TGST Act, 2017, pertaining to FY2021-22. The order, dated December 31, 2025, was received on February 1, 2026. The order was issued by the Assistant Commissioner (ST), Commercial Tax Department, Telangana.
Financial Impact
The adjudication order resulted in a significant reduction in the initially demanded amount. Specifically, a demand of ₹183.77 Cr, including interest and penalty charges, was dropped. However, a balance demand of ₹1.43 Cr remains, comprising demand of ₹0.78 Cr, interest of ₹0.58 Cr, and a penalty of ₹0.07 Cr.
Next Steps
BHEL plans to appeal the remaining demand of ₹1.43 Cr before the Appellate Authorities. The company believes its case is strong and anticipates a favorable outcome. The issue relates to tax demanded for the export of goods beyond the prescribed time period, although the exports have already been completed.
Source: BSE
