GST appellate authority sets aside ₹29.32 crore tax and penalty demand
Refex Industries received a favourable GST appellate order.
By ScoutQuest · · 2 min read
- GST demand set aside
- ₹29.32 crore tax and penalty demand, along with interest, set aside by Commissioner (Appeals), Bhopal
- Under-protest amount
- ₹5.87 crore paid/reversed under protest becomes eligible for refund/re-credit
- Order-in-Appeal
- No. 232-234/COMM/BHO/GST/2026-27 dated October 13, 2026, received by the Company on October 15, 2026
What the company said
Refex Industries Ltd has received an Order-in-Appeal (No. 232-234/COMM/BHO/GST/2026-27 dated October 13, 2026, received by the Company on October 15, 2026) passed by the Commissioner (Appeals), CGST & Central Excise, Bhopal, in the appeal shared by the Company.
What the dispute was
- The Directorate General of GST Intelligence (DGGI), Raipur Zonal Unit, had alleged that the Company availed Input Tax Credit of ₹14.66 crore on the basis of invoices issued by suppliers alleged to be non-existent or fictitious, in connection with coal and ash handling, for works executed for the period April 2018 to March 2021.
- The Order-in-Original dated 27.03.2025 had confirmed the entire demand of ₹14.66 crore along with applicable interest under Section 50 and a penalty of ₹14.66 crore.
- The Company had already paid/reversed ₹5.87 crore under protest, which was appropriated towards that demand.
- The Company shared an appeal before the Commissioner (Appeals).
What the appellate order says
- The Commissioner (Appeals) allowed the Company's appeal and held that the demand, interest and penalty confirmed under the Order-in-Original are not sustainable.
- Consequently, the aggregate demand of tax and penalty of ₹29.32 crore (along with the associated interest) stood vacated.
- The appellate authority held that the allegation is not sustainable on the facts and evidence on record.
Impact on the Company
- The Company states the Order is favourable and is not expected to have any material adverse impact on its financials, operations or other activities.
- The sum of ₹5.87 crore earlier paid/reversed under protest would become eligible for refund/re-credit in accordance with applicable law and procedure.
- The Department retains a right of further appeal before the GST Appellate Tribunal (GSTAT), as and when constituted, within the time prescribed under Section 112 of the CGST Act, 2017.
What this means for investors
The tax, penalty and interest demand that had been confirmed earlier has been set aside by the appellate authority, and the amount already paid/reversed becomes eligible for refund or re-credit as per applicable law. The stated possibility of a further appeal by the Department is the route through which the matter could continue.
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More numbers
- Input Tax Credit allegedly availed₹14,65,96,291
- Penalty confirmed in the Order-in-Original₹14,65,96,291
- Aggregate tax and penalty demand set aside₹ 29,31,92,582
- Amount earlier paid/reversed under protest₹5,86,92,809
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