Legal12 Mar 2026, 07:22 pm
Tata Steel Ltd. Challenges ¥1.13 Billion GST Demand and Penalty Order in Jharkhand High Court
AI Summary
Tata Steel Ltd. has filed a Writ Petition before the Hon’ble High Court of Jharkhand, challenging an Order passed by Commissioner of CGST & Central Excise, Jamshedpur, Jharkhand dated December 18, 2025. The Order directs the payment of tax amounting to ¥493,35,47,131, penalty of ¥638,82,62,185, and appropriate interest on the total amount of tax. The Company believes that proper cognizance of the submissions made by the Company was not taken while adjudicating the matter and has a good case on merits.
Key Highlights
- Tata Steel Ltd. received a show cause cum demand notice (SCN) dated June 27, 2025, proposing disallowance of Input Tax Credit for the period FY2018-19 through FY2022-23.
- The SCN demanded GST amounting to ¥1007,54,83,342/- along with interest/penalty, but the Company had already paid ¥514,19,36,211/- in the normal course of business.
- The Company made detailed submissions before the appropriate forum within the given timelines.
- On December 19, 2025, the Company received an Adjudication Order directing the payment of tax amounting to ¥493,35,47,131, penalty of ¥638,82,62,185, and appropriate interest.
- Tata Steel Ltd. filed a Writ Petition before the Hon’ble High Court of Jharkhand on March 11, 2026, challenging the Order and seeking quashing of the same.