Technocraft Ventures Limited has announced a favorable outcome in a Goods and Services Tax (GST) litigation. The Additional Commissioner, CGST (Appeals), Meerut, has allowed the company’s appeal, thereby vacating a previously confirmed tax demand of ₹1,71,87,505 and an equivalent penalty, along with consequential interest. This decision provides significant financial relief to the company.
Appellate Authority Rules in Favor of Technocraft Ventures
Technocraft Ventures Limited has received a significant positive development in its ongoing GST litigation. The company announced that the Additional Commissioner, Central Goods and Services Tax (Appeals), Meerut, has allowed its appeal against an order passed by the Assistant Commissioner, CGST, Division-VI, Ghaziabad. This decision, dated October 19, 2026, effectively overturns the original demand and penalty imposed on the company.
Details of the Litigation and Relief
The proceedings originated from a Show Cause Notice issued in June 2025, alleging discrepancies in Input Tax Credit (ITC) claimed for the financial years 2018-19 to 2020-21. The initial order confirmed a total tax demand of ₹1,71,87,505, comprising CGST, SGST, and IGST, along with an equivalent penalty of ₹1,71,87,505, aggregating to approximately ₹3,43,75,010, plus applicable interest. The company had filed an appeal on March 9, 2026, challenging this order.
The Appellate Authority, after reviewing the submissions and evidence, held that the Department failed to establish fraud, wilful misstatement, or suppression of facts with intent to evade tax, as required under Section 74 of the CGST Act, 2017. Furthermore, the authority ruled that the proceedings were barred by limitation under Section 73 of the CGST Act, 2017. Consequently, the company’s appeal was allowed, providing relief from the tax demand, penalty, and interest.
Disclosure and Pre-Deposit
The details of these GST proceedings were previously disclosed in the company’s Prospectus dated August 12, 2026. The Order-in-Appeal was uploaded on the Goods and Services Tax (GST) portal on November 2, 2026. Technocraft Ventures had made a mandatory pre-deposit of ₹17,18,753 under Section 107(6) of the CGST Act, 2017, at the time of filing the appeal.
The company has confirmed that this litigation was against the company itself and not against any Key Managerial Personnel, promoter, or ultimate person in control.
Source: BSE
