Dalmia Cement (Bharat) Limited (DCBL), a wholly owned subsidiary of Dalmia Bharat Limited, has received two separate tax demand orders related to the disallowance of Input Tax Credit (ITC) for FY 2019-20. The total preliminary demand, excluding interest, aggregates to approximately ₹1.49 crore across orders from Uttar Pradesh and Jharkhand. DCBL maintains strong grounds for appeal and plans to challenge both orders before the relevant Appellate Authorities.
Overview of GST Adjudication Orders
Dalmia Cement (Bharat) Limited (DCBL) has been served two distinct orders from Goods and Services Tax (GST) authorities concerning the disallowance of Input Tax Credit (ITC) pertaining to the financial year FY 2019-20. Both orders were issued following adjudication proceedings initiated by a show cause notice.
Order 1: Varanasi, Uttar Pradesh
The first order was received from the Jt. Commissioner, Corporate Circle, Varanasi II, Mirzapur, Uttar Pradesh. This order demands:
- Tax Demand: Rs. 21,74,976/- along with applicable interest.
- Penalty Imposed: Rs. 21,74,976/-.
The date of receipt for this communication was March 26, 2026, at 11:15 a.m.
Order 2: Bokaro, Jharkhand
The second order originated from the Assistant Commissioner of CGST & CX, Division-II Bokaro, Jharkhand. This demand is significantly larger:
- Tax Demand: Rs. 1,26,94,260/- along with applicable interest.
- Penalty Imposed: Rs. 1,26,94,260/-.
DCBL received this communication on March 26, 2026, at 4:25 p.m.
Financial Impact and Appeal Strategy
The company has assessed that these two orders, covering the tax, interest, and penalty components, do not constitute a major financial impact on DCBL when viewed against the overall operational scale.
Crucially, the management believes that DCBL possesses good grounds on merits to contest these demands. Consequently, the subsidiary will initiate an appeal against both orders before the designated Appellate Authorities within the legally prescribed timelines.
Source: BSE
