Schneider Electric Infrastructure Loses Appeal on CENVAT Credit, Faces ₹12.16 Lakh Penalty

Schneider Electric Infrastructure Ltd has received an appeal order dated July 29, 2026, from the Commissioner (Appeals), CGST Noida. The order partly upholds a demand of ₹9,57,641 for ineligible CENVAT credit (Education Cess, SHE Cess, Krishi Kalyan Cess) transitioned via TRAN-1 and ₹2,58,549 for hotel booking facilitation services lacking business nexus. The appellate authority set aside a demand of ₹2,83,584 related to transit invoices. The total confirmed demand, along with applicable interest, results in a revised penalty of ₹12,16,190 under Sections 122 and 74 of the CGST Act, 2017. The company is evaluating legal remedies, stating there is no material impact on financials beyond the confirmed liability.