An order has been passed against Deepak Phenolics Limited (DPL), a wholly-owned subsidiary of Deepak Nitrite, by the Additional Commissioner, CGST & Central Excise, Vadodara-I, Vadodara. The order pertains to the recovery of ineligible Input Tax Credit of ₹2,15,34,798 along with penalty under the GST Act. Deepak Nitrite believes DPL has a strong case and will appeal the order.
Details of the Order
An order has been issued against Deepak Phenolics Limited (DPL), a subsidiary of Deepak Nitrite, by the Additional Commissioner, CGST & Central Excise, Vadodara-I. The order, dated October 8, 2025, addresses certain input tax credit claims.
Financial Implications and Actions
The authorities have ordered the recovery of ineligible Input Tax Credit amounting to ₹2,15,34,798 (CGST & SGST each ₹1,07,67,399) along with applicable interest. A penalty of ₹2,15,34,798 (CGST & SGST each ₹1,07,67,399) has also been imposed under the GST Act.
Company Stance and Way Forward
Deepak Nitrite maintains that DPL has availed input tax credit in compliance with the GST Law. The company believes its position is legitimate and has obtained an independent expert legal opinion. DPL intends to pursue all available legal options, including filing an appeal against the order before the relevant appellate authority.
Impact Assessment
The company anticipates no material financial impact beyond the aforementioned amounts. The legal team is diligently handling the matter and is confident in its ability to resolve the issues.
Source: BSE
