Camlin Fine Sciences Limited has received a significant tax demand order from GST authorities, requiring the company to pay ₹96,65,820 for alleged tax violations related to foreign currency transactions. The order was issued by the Office of the Assistant/Deputy Commissioner of CGST & Central Excise, Division-IV, Palghar Commissionerate and received by the company on March 30, 2026.

Tax Demand Details

The comprehensive order encompasses multiple financial obligations for the company:

The total financial exposure could potentially exceed ₹1.93 crore excluding the interest component, which will be calculated as per applicable provisions.

Nature of Alleged Violations

The tax demand stems from alleged non-compliance with Reverse Charge Mechanism (RCM) provisions during a four-year period. The order specifically addresses:

• Tax liability on expenses incurred in foreign currency
• Reimbursements made to foreign subsidiaries
• Non-payment of tax under RCM for financial years 2019-20 to 2022-23
• Violations under CGST Act, 2017 along with corresponding MGST Act, 2017 and IGST Act, 2017

The authorities have invoked Section 74(9) of the CGST Act, 2017, which deals with determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed.

Company's Response and Impact Assessment

Camlin Fine Sciences has provided a measured response to the tax order, emphasizing minimal operational disruption:

The company has stated that it has examined the order and is in the process of filing an appeal against the demand. This indicates the company disputes the allegations and believes it has grounds to challenge the order before appellate authorities.

Regulatory Compliance

The disclosure has been made in compliance with Regulation 30 read with sub-para 20 of Para A of Part A of Schedule III of the SEBI Listing Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about orders passed by regulatory authorities that may have material impact on the company's operations or finances.

The company has simultaneously informed both BSE Limited and National Stock Exchange of India about this development, ensuring full transparency with market participants and regulatory bodies.

Camlin Fine Sciences Limited promoter Ashish S. Dandekar has disclosed the creation of additional share pledges worth ₹15.29 crore through two separate transactions. The disclosures were made on March 27, 2026, in compliance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Share Pledge Details

The promoter executed two pledge transactions within a span of five days as additional margin pledges to cover shortfall in security cover:

Promoter Shareholding Position

Ashish S. Dandekar holds a significant stake in the company with the following shareholding structure:

Purpose and Security Arrangements

The March 20 pledge relates to financial assistance obtained by the target company, while the March 25 pledge pertains to financial assistance obtained for acquiring shares of the target company. Both transactions were structured as additional margin pledges to address shortfall in security cover.

The shares have been pledged in favor of LRSD Securities Private Limited and Aditya Birla Capital Limited, both identified as scheduled commercial banks, public financial institutions, NBFCs, or housing finance companies in the disclosure documents.

Regulatory Compliance

The encumbered shares represent more than 50% of the promoter's shareholding, triggering mandatory disclosure requirements under SEBI SAST Regulations. However, the encumbered portion does not exceed 20% of the company's total share capital, keeping it below the threshold for additional regulatory scrutiny.

The company's shares are listed on both BSE Limited and National Stock Exchange of India Limited, and the disclosure has been submitted to both exchanges along with the company secretary as per regulatory requirements.