Bajaj Electricals Limited has received an adverse appeal order from GST authorities, upholding a total demand of Rs 1.16 crore including penalties. The company disclosed this development to stock exchanges on April 17, 2026, under regulatory compliance requirements.

Appeal Order Details

The company received the adverse Appeal Order dated March 30, 2026, on April 16, 2026, at 3:22 p.m. The order was issued by the Office of the Commissioner (Appeals) of Customs, CGST & Central Excise, Patna, Bihar. The Appellate Authority rejected the company's appeal and upheld the original assessment order.

Background of the Case

The dispute stems from an assessment order issued on May 25, 2023, by the Assistant Commissioner of Sales Tax, Kotwali, Bihar, under section 74(1) of the CGST/SGST/IGST Act, 2017. The order raised concerns regarding alleged disallowance of transitional credit availed in 'Form Tran 1'. The company had previously filed an appeal against this original order before the Appellate Authority.

Company's Response and Next Steps

The management is currently evaluating appropriate legal options available to challenge the adverse appeal order. The company's potential legal remedies include:

• Filing an appeal before the appropriate appellate tribunal
• Filing a writ petition before the Hon'ble High Court

Financial and Operational Impact

According to the company's disclosure, the financial impact of the Appeal Order, if it materializes, would be limited to the extent of the demand raised and penalty levied. The company has clarified that there is no impact on its operational, financial, or other activities due to this order or assessment.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015, and the company's Policy on the Determination of Materiality for Disclosure of Events or Information.

Bajaj Electricals Limited has informed stock exchanges about receiving an adverse appeal order from GST authorities, demanding Rs 3.45 crore including penalties for alleged tax discrepancies related to FY 2018-19 filings.

Appeal Order Details

The company received the adverse appeal order dated March 27, 2026, on April 6, 2026, issued by the Office of the Commissioner (Appeals), Central Excise, Customs & CGST, Jaipur under Section 107 of the CGST Act 2017. The appellate authority rejected the company's submissions and upheld the demand based on alleged short payment of tax due to discrepancies between GSTR 1 and GSTR 3B filings.

Financial Demand Breakdown

The GST authorities have raised a gross demand of Rs 3.45 crore, which includes penalty components for the alleged tax discrepancies.

Background and Timeline

This development follows an earlier assessment order received on April 30, 2024, from the Additional Commissioner, Jaipur, under section 73 of the Goods and Services Act 2017. The original assessment had raised a similar gross demand of Rs 3.45 crore with a penalty of Rs 31.39 lakh for the same FY 2018-19 discrepancies.

Company's Response Strategy

The management is currently evaluating multiple legal remedies to challenge the adverse appeal order:

• Filing an appeal before the appropriate appellate tribunal
• Submitting a writ petition before the Hon'ble High Court
• Exploring other appropriate legal options

Impact Assessment

Bajaj Electricals has clarified that if the demand materializes, the financial impact would be limited to the Rs 3.45 crore demand amount and associated penalties. The company emphasized that there would be no impact on its operational, financial, or other business activities due to this order.

The disclosure was made under Regulation 30 of SEBI Listing Regulations, demonstrating the company's commitment to transparency in material developments affecting stakeholder interests.