Indo Euro Indchem Limited Receives GST Demand Order Worth Rs.10.69 Lakh
Indo euro indchem Limited has received a GST demand order from tax authorities, prompting the company to prepare its defense strategy through appropriate legal channels. The chemical company disclosed this development to BSE Limited on April 15, 2026, under regulatory compliance requirements.
GST Demand Order Details
The demand order was issued by the office of Assistant Commissioner of Central GST & Central Excise, Division-I, Mumbai Central Commissionerate, and was received by the company on March 13, 2026. The order pertains to alleged violations under the CGST Act, 2017, along with corresponding sections under Maharashtra SGST Act, 2017 and IGST Act 2017.
| Parameter: | Details |
|---|---|
| Issuing Authority: | Assistant Commissioner of Central GST & Central Excise, Division-I, Mumbai Central Commissionerate |
| Order Date: | March 13, 2026 |
| Legal Framework: | CGST Act 2017, Maharashtra SGST Act 2017, IGST Act 2017 |
Alleged Violations and Financial Impact
The GST authorities have alleged that the company fraudulently availed Input Tax Credit (ITC) through inward supplies supported by fake or bogus e-way bills. The financial implications of this order are substantial for the company.
| Financial Component: | Amount | Legal Section |
|---|---|---|
| Alleged ITC Amount: | Rs.10,69,040 | Section 74(1) of CGST Act 2017 |
| Penalty Imposed: | Rs.62,70,852 | Section 122 of CGST Act 2017 |
| Total Exposure: | Rs.73,39,892 | Combined demand and penalty |
The penalty has been imposed on account of alleged suppression of facts and resultant availment of inadmissible ITC through the generation of fake invoices and e-way bills.
Company's Response Strategy
Indo Euro Indchem's management and GST team conducted an internal review of the notice content to determine the prima facie substance and amount involved. The company has decided to contest the order based on advice from tax consultants.
Key aspects of the company's response include:
- Filing appropriate response within prescribed timelines
- Defending the matter before appropriate appellate authority
- Pursuing suitable legal remedies through proper channels
- Treating the financial impact as contingent liability
Operational Impact Assessment
According to the company's disclosure, there is no impact on operations and other activities due to this order. The financial impact has been classified as a contingent liability, indicating the company's confidence in its defense strategy. The management emphasized that normal business operations continue unaffected while the legal proceedings are pursued through appropriate channels.
