Vodafone Idea has received an order confirming a penalty of ₹6,47,13,708 under the Finance Act, 1994, related to alleged incorrect availing of CENVAT credit on capital goods. The company disagrees with the order and intends to file an appeal. The maximum financial impact is to the extent of the tax demand, interest, and penalty levied. The order was received on September 18, 2025.
Penalty Order Details
Vodafone Idea Limited has been issued an order confirming a penalty related to alleged irregularities under the Finance Act, 1994. The order, received on September 18, 2025, pertains to issues regarding CENVAT credit.
Financial Impact and Response
The confirmed penalty amounts to ₹6,47,13,708. This penalty has been imposed under Rule 15(3) of the CENVAT Credit Rules, 2004, read with Section 78(1) of the Finance Act, 1994, inclusive of applicable tax and interest.
Vodafone Idea disagrees with the order and plans to appeal against it. The maximum financial impact is capped at the amount of tax demand, interest, and penalty levied.
Reason for Penalty
The penalty has been levied due to alleged incorrect availing of CENVAT credit on capital goods. The order was passed by the Principal Commissioner, Central GST, Ahmedabad, Gujarat.
Source: BSE
