Bajaj Electricals announced that the Appellate Authority has rejected its appeal concerning a tax dispute involving the disallowance of transitional credit. The authority upheld the original tax demand of Rs. 1.16 crore, which includes a general penalty of Rs. 39.68 lakh. The company is currently evaluating further legal avenues, including potential appeals to an appellate tribunal or filing a writ petition before the High Court.
Dispute Background
The issue stems from an assessment order dated May 25, 2023, regarding an alleged disallowance of transitional credit claimed in Form Tran 1. The tax authority had initially raised a total demand of Rs. 1.16 crore. Following the rejection of the appeal by the Appellate Authority on March 30, 2026, which was formally received by the company on April 16, 2026, the demand remains upheld.
Management Response and Next Steps
The company’s management is actively reviewing the Appeal Order to determine the most effective legal course of action. Available options under consideration include filing a fresh appeal before the appropriate appellate tribunal or seeking relief through a writ petition in the Hon’ble High Court.
Operational Impact
Bajaj Electricals has clarified that this order does not pose any risk to the company’s daily operations or overall business continuity. The financial impact, should the liability materialize, remains limited strictly to the Rs. 1.16 crore demand and the associated penalty of Rs. 39.68 lakh previously identified.
Source: BSE
