Elecon Engineering Company Limited has confirmed the payment of a penalty amounting to ₹11,98,800/-. This payment was made under protest to secure the release order concerning a dispute related to GST compliance. The action followed the detention of a transport vehicle by the State Tax Authority due to a mismatch in shipping and consignment documents on March 30, 2026. The company intends to appeal for a refund.
Resolution of Tax Enforcement Action
Elecon Engineering Company Limited has disclosed an action taken by a regulatory authority. The company paid a penalty of ₹11,98,800/- to ensure the release of detained goods related to a Goods and Services Tax (GST) matter. This payment was made under protest to obtain the necessary release order, Form GST MOV-05.
Details of the Enforcement Action
The initiating authority was The Dy. Commissioner of State Tax, Enforcement, Div-8, Surat. The action involved the detention of a transport vehicle on March 30, 2026, stemming from an alleged mismatch between the name specified in the ship-to document and the consignment details. The company has formally received notice from the Authority on March 31, 2026.
Future Course of Action
The company has stated that it is yet to receive the final order in Form GST MOV-09. Upon receipt, Elecon plans to file an appeal seeking a refund for the penalty paid before the appropriate appellate authority. Importantly, the management does not foresee any material impact on the company’s overall financial or operational activities due to this resolved matter.
Source: BSE
