Bajaj Electricals has reported that the Appellate Authority has upheld an earlier tax demand of Rs. 2.69 crore, which includes a Rs. 0.14 crore penalty. The demand relates to alleged liabilities under the Reverse Charge Mechanism and input tax credit mismatches for FY 2020-21. The company is currently evaluating legal remedies, including potential appeals or writ proceedings, and has stated that this development will have no impact on its ongoing operational or financial activities.
Order Details
On May 8, 2026, Bajaj Electricals received an appellate order confirming an aggregate tax demand of Rs. 2.69 crore. This total includes a general penalty of Rs. 0.14 crore. The ruling comes following a review of the company’s tax filings for FY 2020-21, which were previously scrutinized by state commercial tax authorities regarding specific input tax credits and reverse charge liability obligations.
Management Response and Financial Impact
The company management is actively reviewing the order and assessing its legal options. These steps may include filing a formal appeal with the appropriate appellate tribunal or initiating writ proceedings before the Hon’ble High Court to challenge the findings.
Despite the legal developments, the company has clarified that the final assessment poses no disruption to its operational, financial, or day-to-day business activities. The potential financial liability remains strictly limited to the quantum of the demand and the associated penalties specified in the order.
Source: BSE
