Deepak Fertilisers announces that its subsidiary, Mahadhan AgriTech Limited (MAL), faces a demand of ₹1.84 crore. This demand includes tax, interest, and a penalty. MAL is challenging the order and maintains it is not tenable. The company will pursue legal options to contest the demand.
Demand Raised Against Subsidiary
Mahadhan AgriTech Limited (MAL), a subsidiary of Deepak Fertilisers, has received an order raising a total demand of ₹1.84 crore. This amount comprises tax of ₹1,04,22,839, interest of ₹69,39,040, and a penalty of ₹10,78,460.
Details of the Matter
The Assistant Commissioner of Commercial Taxes (Audit)-6.3, DGSTO-6, Bangalore, issued the order. The reference number for this order is ZD291225240989S, dated December 31, 2025. The department disallowed input tax credit claimed stating non-reflection in GSTR2A.
Company’s Stance and Next Steps
Deepak Fertilisers and MAL maintain that there has been no violation or contravention. MAL has taken a legal view that the demand is not tenable and intends to challenge the order. The company will challenge the demand at an appropriate forum. Deepak Fertilisers believes that the demand will not have a material impact on the financials, operations, or other activities of the company.
Source: BSE
