GST (Appeals) sets aside Input Tax Credit demand of Rs. 4,82,792 and equal penalty

The GST (Appeals) authority, Meerut has set aside the Input Tax Credit demand of Rs. 4,82,792/- plus Rs.4,82,792/- penalty and interest raised on the company's Mawana unit.

Tue 6 Oct 2026

Input Tax Credit demand set aside

Rs. 4,82,792/-

Penalty set aside

Rs.4,82,792/-

Appellate authority

Office of Commissioner, Central Goods & Services Tax (Appeals), Meerut

GST demand on the Mawana unit set aside

The company has informed the exchanges that the Office of Commissioner, Central Goods & Services Tax (Appeals), Meerut has set aside a demand that had been raised on its unit, Mawana Sugar Works (MSW), Mawana.

• The demand related to alleged wrongly availed Input Tax Credit, for which the unit had received a letter on 18.12.2025 from the Office of the Superintendent, Central Goods & Service Tax, Range Mawana, DIV-II, Muzaffarnagar, Uttar Pradesh.
• The company represented its case by update an appeal against that demand notice.
• On examination of the matter, the appellate authority accepted the company's contentions and held that the allegation was not sustainable in view of the facts and evidence available on record.

What has been set aside

• Input Tax Credit demand: Rs. 4,82,792/-
• Penalty: Rs.4,82,792/-
• The demand also carried interest as per section 50 of the CGST Act read with Section 20 of the IGST Act, and that too has been set aside. The penalty was levied as per Section 74(1) of the CGST Act read with Section 20 of the IGST Act.

Why this matters to an investor

• "Set aside" means the demand, the equal penalty and the interest no longer stand at this stage, so this particular demand does not create a liability that the company has to pay as things stand.
• The amounts involved are small relative to the scale of a sugar company's operations, so the financial read-through is limited.

The company also disclosed the following in this intimation

• There is no litigation against key management personnel, promoter or ultimate person in control in this matter.
• There is no settlement of the proceedings to report, and so no terms of settlement, compensation or penalty paid, or impact on the financial position from a settlement.

What to watch

• This is an appellate order in the company's favour; the matter stands decided at this level for now.

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