Shree Renuka Sugars Limited has announced receipt of a penalty order dated March 18, 2026, from the State Tax Unit-103, Gandhidham. The order imposes a penalty of Rs. 3,20,68,779/- related to the alleged wrongful availment of Input Tax Credit (ITC). The company has reviewed the order and believes it has strong grounds for appeal, and is currently evaluating the next steps in the matter.
Tax Authority Penal Order Issued
Shree Renuka Sugars Limited has been served an order by the Office of the Assistant Commissioner of State Tax Unit-103, Gandhidham. The communication was officially received by the company on March 20, 2026.
The core issue addressed in the communication involves the alleged violation of statutory provisions related to the wrongful availment of Input Tax Credit (ITC) across various transactions.
Penalty Amount and Financial Implication
The impugned order directs the company to pay a penalty amounting to Rs. 3,20,68,779/-. The company has assessed the immediate financial impact, stating that while the penalty is quantified, there is no material impact on the overall financial or operational activities beyond the final penalty amount itself.
Company Response and Next Steps
Shree Renuka Sugars Limited maintains the bona-fide view that the matter holds strong merit in its defense. Consequently, the company is actively preparing to file an appeal before the designated appellant authority to contest the penalty levied.
Regarding the timing of the disclosure, the company explained that a delay occurred because management was engaged in a detailed review of the order and was simultaneously evaluating the necessary strategic steps to respond effectively to the tax authority’s directive.
Source: BSE
