Subsidiary's GST demand and penalty of Rs. 82,554 each set aside in full by appellate authority

Lemon Tree Hotels' subsidiary Sukhsagar Complexes had received a CGST demand and penalty order from the Superintendent, CGST Range-XXIII, Jaipur.

Thu 8 Oct 2026

GST Demand Set Aside

Rs. 82,554/-

Penalty Set Aside

Rs. 82,554/- set aside in full

Stated Financial Impact

no financial impact

What the update says

Lemon Tree Hotels Ltd has disclosed an order received by its subsidiary, Sukhsagar Complexes Private Limited, from the Commissioner (Appeals), Central Excise & CGST, Jaipur.

The matter relates to an earlier order passed by the Office of the Superintendent, CGST Range XXIII, Jaipur, which had raised a demand of Rs. 82,554/- and a penalty of Rs. 82,554 under the Central Goods and Services Tax Act, 2017.

What the appellate authority decided

• The Authority held that the demand raised by the Superintendent is unsustainable.
• It set aside the demand and the penalty imposed under that order in full.
• The update states that no liability remains against the subsidiary company in respect of this matter.

Impact stated by the company

The company states there is no financial impact on the company or its subsidiary, since the entire demand and penalty have been set aside by the Authority.

Why this matters to a retail investor

A tax demand on a subsidiary is a contingent liability until it is resolved. Here, the appellate authority has removed that liability completely — both the demand and the penalty. The amounts involved are small relative to the size of a listed hotel company, and the company itself has said there is no financial impact from this development.

What to keep in mind

This disclosure is about one specific GST matter of one subsidiary. It does not change anything about the company's hotel operations, room additions or other business activities.

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