Neogen Chemicals has received a show cause cum demand notice from the Office of the Commissioner CGST and Central Excise Commissionerate, Belapur. The notice, dated August 24, 2026, pertains to the financial year 2022-23 and levies a consolidated tax demand of ₹6,97,08,028, including interest and penalty. The company is currently evaluating the notice and plans to submit a detailed reply, pursuing all available legal remedies.
Tax Demand Notice Received
Neogen Chemicals Limited has announced the receipt of a show cause cum demand notice from the Office of the Commissioner CGST and Central Excise Commissionerate, Belapur. This notice, dated August 24, 2026, and received by the company on September 5, 2026, pertains to the financial year 2022-23.
Nature of the Notice
The notice levies a consolidated tax demand amounting to ₹6,97,08,028, which comprises applicable interest and penalties. This demand has been issued pursuant to Section 73 of the CGST Act, 2017, MGST Act, 2017, and Section 20 of the IGST Act, 2017. It is important to note that a principal tax amount of ₹1,38,95,418 was already paid vide DRC-03 dated December 28, 2022, which has been appropriated towards the tax liability. The current demand pertains to outstanding interest and penalties.
Grounds for Demand
The notice has been issued on three primary grounds:
- GSTR-1 vs. GSTR-3B tax mismatch, where tax was paid via DRC-03 without interest; interest and penalty are now demanded.
- Excess Input Tax Credit (ITC) on the import of goods, identified by a mismatch between GSTR-3B and GSTR-2B, with no valid Bills of Entry for FY 2022-23.
- Excess ITC claimed in GSTR-3B versus GSTR-2A, related to unsubstantiated SEZ or import claims.
Company’s Response and Impact
Neogen Chemicals is currently evaluating the notice and intends to file a detailed reply with the adjudicating authority within the stipulated timelines. The company also stated that it will take appropriate actions as deemed fit and in the best interest of the company, pursuing all available legal remedies. The company assesses that there is no material impact on its financial, operational, or other activities, except for the amount mentioned in the notice itself.
Source: BSE
