GST appeal of material subsidiary partially allowed; interest liability on irregular ITC held not to arise
Lemon Tree Hotels said its material subsidiary Fleur Hotels' GST appeal was partially allowed by the CGST (Appeals), Dehradun.
By ScoutQuest · · 2 min read
- Appellate Authority
- Office of the Commissioner, Central Goods and Service Tax (Appeals), Dehradun
- Order-in-Appeal Date
- 08.10.2026
- Appeal Outcome
- Partially allowed; liability of interest on irregular ITC will not arise
What was announced
Lemon Tree Hotels has informed the exchanges, under Regulation 30, that its material subsidiary Fleur Hotels Limited has received an Order-in-Appeal from the Office of the Commissioner, Central Goods and Service Tax (Appeals), Dehradun.
The background: an earlier order by the Assistant Commissioner of Central Tax, Dehradun had raised a demand on Fleur for Financial Year 2018 comprising tax, penalty and interest under the CGST Act, 2017. Fleur shared an appeal against that order, and this update is about the outcome of that appeal.
What the appellate authority said
- The Order-in-Appeal is dated 08.10.2026 and was received on 16.10.2026.
- The First Appellate Authority has partially allowed the appeal.
- It held that liability of interest on irregular ITC will not arise.
- The subsidiary will evaluate and take appropriate legal action in due course of time.
Understanding the terms
- ITC, or Input Tax Credit, is the tax a business has already paid on its purchases, which it can set off against the GST it owes on its sales.
- Irregular ITC refers to credit that the tax department considered not allowable.
- Interest is generally charged where tax was collected or used but not paid on time. Here, the appellate authority has held that interest liability on the irregular ITC will not arise.
What the company says about the impact
In the company's own words: "There is no material impact on the Company's financials or operations due to the said order as this order is for Subsidiary of the Company."
How to read this
- Partially allowed means part of the appeal went in the subsidiary's favour; it is not an outright dismissal of the appeal.
- The relief on interest is a specific finding recorded by the appellate authority in its order.
- The underlying dispute relates to Financial Year 2018.
- The company has said the subsidiary may take further legal action, so the matter may continue.
Also from Lemon Tree Hotels
Lemon Tree Hotels signs license agreement for Keys Lite by Lemon Tree Hotels, Bhilwara
23 Oct 2026
Signs MoU with Omaxe to operate ~4,000 keys in multiple key destinations in India
16 Oct 2026
Franchise agreement signed for Keys Select hotel in Bareilly, Uttar Pradesh
13 Oct 2026
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.