Deepak Nitrite’s wholly owned subsidiary, Deepak Phenolics Limited (DPL), has received an unfavorable order from the GST authorities. The order mandates the recovery of ₹2,15,34,798 in input tax credit, along with applicable interest. Additionally, a penalty of ₹2,15,34,798 has been imposed. DPL maintains that it has followed all applicable laws and intends to challenge the decision by filing an appeal before the relevant appellate authority to contest these demands.
Details of the Tax Order
The GST authorities have concluded an appeal process resulting in a ruling against Deepak Phenolics Limited. The authorities have rejected the company’s appeal, upholding the initial order that flagged issues regarding input tax credits. The total financial demand consists of ₹2,15,34,798 in recovered tax credits, supplemented by applicable interest charges, and a matching penalty amount of ₹2,15,34,798.
Company Response and Legal Strategy
Deepak Phenolics Limited asserts that its input tax credit claims were made in full compliance with the relevant legal provisions. The company has formally stated its disagreement with the findings of the GST authorities. To resolve this matter, the subsidiary is preparing to pursue all available legal remedies. This includes filing a formal appeal with the higher appellate authority as prescribed under the law to challenge the validity of the order and the associated financial levies.
Financial and Operational Outlook
The company has confirmed that, aside from the financial impact of the recovery order and penalty mentioned above, there is no broader material risk to its ongoing operations or other corporate activities. Deepak Nitrite continues to monitor the situation closely as the legal appeals process moves forward.
Source: BSE
