Schneider Electric Infrastructure Limited has received an appeal order from the Commissioner (Appeals), CGST Noida. The order partly allowed the company’s appeal, reducing the initial demand by ₹2,83,584/- related to specific transit invoices. However, a demand of ₹9,57,641/- for ineligible CENVAT credit and ₹2,58,549/- for input tax credit related to hotel booking services was upheld, along with applicable interest and a revised penalty of ₹12,16,190/-. The company is evaluating its next steps.
CGST Appeals Court Revises Tax Liability for Schneider Electric
Schneider Electric Infrastructure Limited announced an update regarding a demand notice received from the Joint Commissioner of CGST, Noida. Following an appeal to the Commissioner (Appeals), CGST Noida, the company has been issued an order that partially grants relief on the initial demand.
Details of the Appellate Order
The appellate authority, via an order dated July 29, 2026, partly allowed the appeal. A demand of ₹2,83,584/-, pertaining to transit invoices recorded on July 31, 2017, was set aside. However, the appellate authority upheld the original demand of ₹9,57,641/- concerning the transitional credit of Education Cess, Secondary & Higher Education Cess, and Krishi Kalyan Cess. Additionally, a demand of ₹2,58,549/- for input tax credit related to hotel booking facilitation services, which lacked evidence of business nexus, was also upheld. These demands are subject to applicable interest.
Revised Penalty and Next Steps
Following the appellate order, a revised penalty has been imposed at ₹12,16,190/- under Sections 122 and 74 of the CGST Act, 2017. Schneider Electric is currently evaluating appropriate legal remedies and is assessing the full impact of this order. The company has stated that there is no material impact on its financials, operations, or other routine business activities, with the impact being limited to the extent of the liability confirmed by the Appeal Order.
Source: BSE
