Isgec Heavy Engineering has received a formal order from the Assistant Commissioner of GST, Delhi, imposing a total financial liability of Rs. 37,74,378. The order relates to an alleged excess availment of Input Tax Credit during the FY 2022-23. The company has announced its intention to challenge the decision by filing an appeal under the provisions of the Goods and Services Tax Act.
Breakdown of Financial Liability
The total demand of Rs. 37,74,378 issued by the tax authorities includes three distinct components. The core tax demand is Rs. 20,70,589. Additionally, the order includes a penalty of Rs. 2,20,112 and an interest charge of Rs. 14,83,677. This assessment pertains to the FY 2022-23 and specifically concerns the utilization of Input Tax Credit.
Management Response and Next Steps
The company confirmed that the order was received on May 15, 2026. In response to the tax authority’s findings, Isgec Heavy Engineering intends to pursue the formal legal remedy available to them. The company will be filing an appeal with the relevant appellate authorities under the Goods and Services Tax Act to contest the levy and the associated interest and penalty charges. The company maintains its position and will seek a resolution through the appellate process.
Source: BSE
