Shree Renuka Sugars has revised its disclosure regarding a penalty order received from the Commissioner of Central Goods and Service Tax, Kutch. The penalty, amounting to Rs. 49,53,224, stems from alleged irregularities in availing and utilizing Cenvat Credit. The company maintains it has strong grounds for appeal and is pursuing legal recourse. There is no significant impact on the company’s financials is anticipated.
Revised Disclosure of Penalty Order
Shree Renuka Sugars has updated its disclosure concerning a penalty order originally dated September 4, 2025. This revision comes after an initial intimation made on September 18, 2025. The actual receipt date of the order by the company was September 17, 2025.
Details of the Penalty
The penalty order was issued by the Office of the Commissioner of Central Goods and Service Tax, Kutch (Gandhidham). The action taken was an order passed under provisions of the Cenvat Credit Rules, 2004, read with the Central Excise Act, 1944, demanding a penalty of Rs. 49,53,224/-.
Grounds for the Penalty
The penalty was imposed based on audit observations, alleging wrongful availing and utilizing Cenvat Credit, in contravention of the relevant laws. The adjudicating authority confirmed these findings.
Company’s Stance and Next Steps
Shree Renuka Sugars holds a strong belief in its case and is in the process of filing an appeal. The company considers the appeal well-founded and sees strong merit for a favorable outcome.
Anticipated Impact
The company currently does not foresee any significant repercussions on its financial standing or operational activities due to this matter. The company emphasizes that it does not anticipate any serious financial implications.
Source: BSE
