Deepak Fertilisers and Petrochemicals Corporation Limited has announced that its material subsidiary, Mahadhan AgriTech Limited (MAL), received a tax demand order. The order, issued by the Assistant Commissioner of CGST & Central Excise on March 25, 2026, involves a total demand of ₹54,88,146 related to the disallowance of CEN VAT Credit. The company asserts that the demand is not tenable and plans to challenge it at the appropriate legal forum.
Details of the Tax Order
The subsidiary, Mahadhan AgriTech Limited, received an order dated March 25, 2026, which was formally served on April 20, 2026. The authority has raised a total financial demand of ₹54,88,146. This amount comprises a tax component of ₹27,44,073, along with an equivalent penalty of ₹27,44,073, plus applicable interest charges.
Basis and Financial Impact
The core issue cited in the order pertains to the disallowance of CEN VAT Credit. Despite the issuance of this order, the parent company has confirmed that there is no material impact on the overall financials, operations, or other business activities of the company.
Strategic Response
Management has conducted a thorough review of the order and has taken a firm legal stance that the demand is not tenable. Consequently, Mahadhan AgriTech Limited intends to contest the order by filing an appeal at the appropriate legal forum to seek the set-aside of these charges. The company remains committed to transparently addressing the matter through due legal process.
Source: BSE
