Bajaj Electricals has received an adverse order from the Appellate Authority regarding a tax demand for the 2018-19 financial year. The order pertains to alleged discrepancies between GSTR 1 and GSTR 3B filings, resulting in a total demand of Rs 3.45 crore, including a penalty of Rs 31.53 lakh. The company is currently evaluating potential legal recourse, including appeals to the tribunal or filing a writ petition with the High Court.
Background of the Tax Dispute
The issue stems from an assessment concerning the 2018-19 financial year, where tax authorities identified a discrepancy between the company’s GSTR 1 and GSTR 3B filings. Initially, an assessment order was issued on April 30, 2024, which raised an alleged gross demand of Rs 3.45 crore, including a penalty of Rs 31.39 lakh.
Update on Appellate Proceedings
The company received an adverse Appeal Order dated March 27, 2026, which was formally served on April 6, 2026. The Office of the Commissioner (Appeals) in Jaipur upheld the demand, rejecting the submissions provided by the company. The revised order maintains a total gross demand of Rs 3.45 crore, with the penalty component marginally adjusted to Rs 31.53 lakh.
Management Response and Financial Impact
In response to this development, the company’s management is exploring further legal options to contest the order. This includes the possibility of filing an appeal before the appropriate appellate tribunal or pursuing a writ petition with the Hon’ble High Court.
The company has confirmed that the financial impact of this order, should it be finalized, remains limited to the specific tax demand and penalty mentioned. Furthermore, the company clarified that this assessment has no impact on its day-to-day operations, financial stability, or other core business activities.
Source: BSE
