Deepak Fertilisers and Petrochemicals has received a tax demand notice amounting to Rs. 74.89 crore from the Deputy Commissioner of State Tax, Pune. The order includes Rs. 31.04 crore in taxes, Rs. 36.09 crore in interest, and Rs. 7.76 crore in penalties. The company maintains there is no violation and plans to challenge the order at an appropriate forum, stating that the demand is not tenable.
Details of the Tax Demand
On March 31, 2026, the Deputy Commissioner of State Tax, Nodal-3, Pune, issued an order (reference no: PUN-NOD-E-307/27040000023V/VAT 2026-27/B-242) against the company. The total demand raised by the authority stands at Rs. 74,89,20,261. The management collected the physical order on May 11, 2026.
Company’s Stance on Compliance
The company has categorically stated that there is no violation or contravention. According to the management, the tax department erroneously applied a 13.5% MVAT rate on the sale of natural gas to a subsidiary, whereas the correct applicable rate is 3%. This lower rate applies to natural gas purchased for captive consumption against Proforma A, which the subsidiary had duly procured and submitted for the transaction in question.
Future Outlook
The company has confirmed that this order will have no material impact on its financials, operations, or business activities. Management is confident that the legal position taken is robust and that the demand will be set aside during the appeal process. The firm intends to formally challenge the order at an appropriate legal forum.
Source: BSE
