Shree Renuka Sugars Limited has received a penalty order dated September 4, 2025, from the Commissioner of Central Goods and Service Tax, Kutch (Gandhidham). The order pertains to alleged irregularities in availing and utilizing Cenvat Credit. The company is preparing to file an appeal before CESTAT, believing it has a strong case. The company doesn’t foresee a major impact on its financial operations.
Details of the Penalty
Shree Renuka Sugars Limited has been notified of a penalty order. The penalty stems from allegations related to the improper utilization of Cenvat Credit under the Central Excise Act, 1944.
Specifics of the Violation
The core issue revolves around the adjudicating authority’s proposed penalty, which is based on an audit observation. It suggests the company wrongly availed and utilized Cenvat Credit, contravening established laws.
Financial Impact
The penalty demanded amounts to Rs. 49,53,224/-. Despite this, the company is confident in its position and does not anticipate a significant impact on its overall financial operations.
Company’s Response
Shree Renuka Sugars believes it possesses a strong case and intends to appeal the order before CESTAT. The company is in the process of preparing its appeal.
Source: BSE
