Tax & Penalty19 May 2026, 05:01 pm
DMCC Chemicals Faces ₹1.06 Cr ITC Demand Appeal
AI Summary
DMCC Speciality Chemicals Ltd received an order regarding an appeal filed by the Department against Order-In-Original no. RGD/DIV-III/AC/MAF/04/2023-24. The appeal contests the dropping of a demand for inadmissible Input Tax Credit (ITC) amounting to ₹1,05,98,933. The department argues that the adjudicating authority incorrectly interpreted Section 17(5) of the CGST Act. DMCC believes the demand is not maintainable and is planning an appeal. The company states that the order has no material impact on its financials or operations.
Key Highlights
- DMCC received an appeal order dated April 27, 2026, on May 19, 2026, regarding inadmissible ITC.
- The appeal contests the dropping of a ₹1,05,98,933 ITC demand by the Additional Commissioner (Appeals Raigad).
- The department claims incorrect interpretation of Section 17(5) regarding capitalization and ITC admissibility.
- DMCC plans to appeal, believing the demand is not maintainable.
- The company assesses no material impact on financials or operations from the order.
Price Impact
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