DMCC Speciality Chemicals has received an appeal order regarding a GST demand of ₹1.05,98,933. The order, dated April 27, 2026, was issued by the Additional Commissioner (Appeals Raigad) and received by the company on May 19, 2026. The communication was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Appeal

The appeal was filed by the Department against an Order-In-Original passed by the Assistant Commissioner, Division-III, CGST & Central Excise, Raigad Commissionerate. The original order, dated December 20, 2023, had dropped the demand for the inadmissible ITC amount. The department contended that the adjudicating authority incorrectly interpreted the explanation to Section 17(5) of the CGST Act, 2017, by treating capitalization as the sole criterion for deciding the admissibility of the credit.

Order Details and Violations

The appellate authority set aside the previous order to the extent it dropped the demand. The ITC amounting to ₹1.05,98,933 has been held inadmissible under Section 17(5)(c) of the CGST Act, 2017. The authority has ordered the recovery of this amount under Section 73 of the CGST Act, 2017, along with applicable interest and penalty.

Company Response and Impact

DMCC Speciality Chemicals stated that, based on its assessment, the said demand is not maintainable. The company is currently in the process of preferring an appeal against the order. Management has indicated that the order has no material impact on the financials, operations, or other activities of the company.

DMCC Speciality Chemicals has drawn attention following remarks by its Co-Managing Director, who expressed confidence in the company's medium-term future. The statement signals a measured optimism regarding the company's business trajectory in the near to medium term.

Supply Chain Normalization Remains a Key Concern

While expressing a positive outlook, the Co-MD highlighted that supply chains may not return to normal immediately, even in the event of the Strait of Hormuz reopening. The executive pointed to two primary factors contributing to the delay in normalization:

• Shipping Delays: Disruptions in global shipping routes are expected to persist, slowing the recovery of supply chains.
• Commodity Price Stabilization: The time required for commodity prices to stabilize is seen as an additional factor that could prolong the return to normalcy in supply chains.

Key Highlights

The Co-MD's comments underscore the broader challenges facing specialty chemicals companies operating in global markets, where geopolitical developments and logistics disruptions continue to influence business conditions. The remarks reflect a cautious yet constructive assessment of the company's positioning in the current environment.