Deepak Fertilisers and Petrochemicals Corporation Limited has disclosed the receipt of a Demand Order imposing a financial penalty. The order, dated March 11, 2026, pertains to the disallowance of an input tax credit claimed by the company, citing it as ineligible. The total demand levied is Rs. 26,75,620/-, comprising principal tax and a corresponding penalty. The company intends to challenge this order on legal grounds, asserting the demand is not tenable.
Disclosure of Regulatory Action Received
Deepak Fertilisers and Petrochemicals Corporation Limited has formally disclosed the receipt of a Demand Order concerning tax liabilities. The disclosure was made on March 12, 2026, covering an order received via email on March 11, 2026.
Details of the Demand Order
The authority issuing the order was the Superintendent, CGST & C. Ex. Range-IV, Div-VII, Bharuch, Vadodara-II Commissionerate. The reference number for the order is ZD240326030386L, dated March 11, 2026.
Breakdown of Financial Demand
The order raised a total demand amounting to Rs. 26,75,620/-, structured as follows:
- Tax Demand: Rs. 13,37,810/-
- Interest: Rs. NIL
- Penalty: Rs. 13,37,810/-
Nature of Alleged Violation
The core issue detailed in the order pertains to the disallowance of input tax credit claimed by the company, which the Department stated was an ineligible credit. The company confirms there were no ad-interim or interim orders issued alongside this communication.
Company Position and Financial Impact
The company asserts that there is no material impact on financials, operations, or other activities due to this demand. Furthermore, the management has taken a legal view that the demand is not tenable and is liable to be set aside in appeal. The company has stated its intention to formally challenge the aforesaid Order at an appropriate Forum.
Source: BSE
