Deepak Fertilisers Appeals Partially Upheld, Reduced Penalty

Deepak Fertilisers has announced that appeals against a demand order have been partially upheld. The penalty has been reduced from ₹1,82,88,216 to ₹18,28,821. The assessing officer (AO) has been directed to re-determine the demand under section 73, instead of section 74. The company is contesting the remaining demand before the GST Tribunal.

Partial Relief on Appeals

Deepak Fertilisers received communication on December 2, 2025, regarding the disposal of appeals against a previous demand order. The appeals were filed with the Joint Commissioner (CGST Appeals) Rajkot.

Key Outcomes of the Appeal

The Joint Commissioner has granted the following reliefs:

The assessing officer (AO) must re-determine the demand under section 73 of the Act, instead of section 74.

The interest of ₹4,57,129 has been set aside.

The penalty has been reduced from ₹1,82,88,216 to ₹18,28,821.

The AO has been directed to re-determine the final liability.

Company’s Next Steps

Deepak Fertilisers believes the remaining demand is not justified and plans to challenge the order before the GST Tribunal. The company has initiated actions to contest the order.

Source: BSE