Camlin Fine Sciences Limited has received a significant order from tax authorities regarding Input Tax Credit (ITC) violations spanning multiple financial years. The company disclosed this development through a regulatory filing dated March 16, 2026, in compliance with SEBI listing regulations.

Order Details and Financial Impact

The Additional Commissioner from the Office of the Commissioner of CGST & Central Excise, Palghar Commissionerate, has issued an order demanding substantial amounts from the company. The order addresses violations related to ineligible ITC claims on trade payables that remained outstanding for more than 180 days.

Legal Framework and Violations

The order has been issued under Section 74 of the CGST Act 2017, read with Section 20 of the IGST Act 2017 and relevant provisions of the MGST Act 2017. The violations identified include contraventions of multiple sections:

• Section 16, Section 41, and Section 155 of the Central Goods and Service Tax Act 2017
• Rule 37 of CGST Rules 2017
• Section 122(2)(b) of CGST Act 2017 for penalty imposition

Timeline and Scope

The violations cover a significant period from FY2019-20 to FY2022-23, specifically relating to the availment of ineligible Input Tax Credit on trade payables that remained outstanding for more than 180 days. This extended timeline suggests a comprehensive audit by the tax authorities.

Company Response and Next Steps

Camlin Fine Sciences has stated that there is no material impact on the financial, operational, or other activities of the company due to this order. The management has examined the order and is in the process of filing an appeal against the decision.

The company received the order on March 16, 2026, and has promptly disclosed the information to stock exchanges as required under Regulation 30 of SEBI listing regulations. This transparency demonstrates the company's commitment to regulatory compliance despite the challenging circumstances.

Camlin Fine Sciences promoter Ashish S. Dandekar has issued a corrected disclosure regarding the pledge of 18,00,000 equity shares, clarifying that the shares were pledged to Ashika Credit Capital Limited, not HDFC Bank Ltd. as initially reported. The correction was submitted on March 5, 2026, following the original disclosure made on February 27, 2026.

Corrected Share Pledge Details

The promoter acknowledged an inadvertent error in the original filing, where the beneficiary entity was incorrectly mentioned. The corrected details of the share pledge transaction are as follows:

Promoter Shareholding Position

Following the pledge creation, Dandekar's overall shareholding and encumbrance position remains as previously disclosed:

Regulatory Compliance and Correction

The revised disclosure was made in compliance with Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The correction was submitted to both BSE Limited and National Stock Exchange of India Limited, along with the company secretary. The promoter emphasized that while the beneficiary name was incorrect in the original filing, all other details including the pledge amount, date, and purpose remained accurate.

Corporate Purpose

The pledged shares continue to serve the purpose of facilitating the company's borrowing requirements through Ashika Credit Capital Limited. This represents a standard corporate financing arrangement where promoter shares are used as collateral to support the company's funding needs, increasing the promoter's total encumbered holdings from 70,00,000 shares to 88,00,000 shares.