Refex Industries Wins Appeal Against ₹29.3 Cr Tax Demand
Refex Industries Limited has received a favorable Order-in-Appeal from the Commissioner (Appeals), CGST & Central Excise, Bhopal. This order sets aside the aggregate demand of ₹29,31,92,582 (₹29.32 Crore) comprising tax and penalty, along with associated interest, which was previously confirmed by the Order-in-Original. The original demand stemmed from allegations of wrongful availment of Input Tax Credit (ITC) amounting to ₹14,65,96,291 (₹14.66 Crore) on invoices from suppliers alleged to be non-existent. The appellate authority found the allegations unsustainable. The company had paid/reversed ₹5,86,92,809 (₹5.87 Crore) under protest. This favorable order is not expected to have any material adverse impact on the company's financials or operations, and the amount paid under protest will be eligible for refund/re-credit.
Key Highlights
- Appellate authority sets aside ₹29.32 Cr tax and penalty demand.
- Original demand was for alleged wrongful Input Tax Credit (ITC).
- Company's appeal against Order-in-Original has been allowed.
- No material adverse impact expected on financials or operations.
- ₹5.87 Cr paid under protest eligible for refund/re-credit.
Price Impact
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