Dalmia Bharat Subsidiary Wins ₹11.82 Lakh Penalty Waiver In GST Appeal
· Free Press Journal
Mumbai: A long-running tax dispute for Dalmia Bharat’s subsidiary has ended in relief, with appellate authorities scrapping a previously imposed penalty and closing the matter without financial consequences.
Penalty Fully Waived
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Dalmia Bharat disclosed that its subsidiary, Dalmia Cement (Bharat) Limited, has received a favorable order from the Office of the Additional Commissioner of CGST (Appeals), Patna. The authority waived the entire penalty of Rs 11,82,298 that had earlier been imposed under GST provisions. This marks a complete reversal of the prior decision and removes a contingent liability from the company’s books.
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The dispute dates back to FY 2017-18 and relates to input tax credit claimed under the Reverse Charge Mechanism. As detailed in the annexure on page 2, the issue arose due to delays in tax payment linked to a resolution plan approved by the National Company Law Tribunal on January 31, 2018. Authorities had initially demanded interest and imposed the penalty through an order issued by the Assistant Commissioner in Gaya, Bihar.
Appeal Overturns Order
Following the earlier ruling, the subsidiary filed an appeal challenging the penalty. The appellate authority reviewed the case and ruled in favor of Dalmia Cement (Bharat) Limited, effectively cancelling the entire penalty demand. The order was received on April 30, 2026 at 06:40 P.M., bringing closure to the litigation. The decision underscores the company’s success in contesting regulatory claims through legal channels.
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With the penalty fully waived, Dalmia Bharat confirmed there will be no financial impact on the subsidiary. The annexure explicitly states that the outcome does not affect the company’s financial position. Additionally, the case does not involve promoters or key managerial personnel, and no settlement terms were required, as the appeal itself resolved the matter entirely.
The resolution of this case removes uncertainty tied to historical tax matters and reinforces Dalmia Bharat’s compliance approach. The company’s ability to secure a complete waiver highlights its legal strategy in managing legacy disputes effectively.
Disclaimer: This article is based solely on the company’s official disclosure dated May 1, 2026, and annexed details, without reference to any external sources.