Vedant Fashions Limited has received an order from the Additional Commissioner (Appeal) regarding a tax dispute for the fiscal years 2017-18 to 2019-20. The appellate authority has rejected the company’s appeal, effectively upholding the original demand. The confirmed liability includes the recovery of ₹1,01,20,387 in input tax credit, applicable interest, and a penalty of ₹1,01,20,387. The company is currently evaluating the order and considering its options for further relief.
Appellate Order Details
On May 13, 2026, Vedant Fashions Limited was notified of an unfavorable decision from the Office of the Additional Commissioner (Appeal), Kolkata. The authority dismissed the company’s appeal against a previous tax demand, confirming the original order issued on February 02, 2025, without any modifications.
Breakdown of Tax Liability
The dispute pertains to the reversal of input tax credit (ITC) for the period between FY 2017-18 and FY 2019-20. The confirmed financial obligations comprise:
- Recovery of proportionate ITC amounting to ₹1,01,20,387 (inclusive of ₹73,48,041 in IGST, ₹13,86,173 in CGST, and ₹13,86,173 in SGST).
- Applicable interest on the aforementioned ITC amount.
- A penalty of ₹1,01,20,387 as per prevailing tax laws.
Next Steps
The company has stated that this order does not result in any further material impact on its financial or operational activities beyond the figures disclosed. Management is actively evaluating the implications of the Order-in-Appeal and intends to take necessary legal and administrative steps, including seeking appropriate relief within the legally prescribed timelines.
Source: BSE
