ESAB India Limited has received a tax demand order of Rs. 37,99,846 from West Bengal tax authorities for FY 2022-23, relating to Input Tax Credit discrepancies under the CGST/WBGST Act. The company disclosed this development under Regulation 30 of SEBI listing regulations on 30th April 2026.

Tax Demand Details

The order was issued by the Deputy Commissioner of Revenue, State Tax, Office of the Senior Joint Commissioner, Commercial Taxes, West Bengal under section 73 of CGST/WBGST Act, 2017. The demand includes tax, interest, and penalty components for alleged violations during FY 2022-23.

Nature of Alleged Violations

Upon scrutiny of the filed returns, the tax authority identified specific discrepancies in the company's tax compliance:

• Short payment of taxes during FY 2022-23
• Excess claim of Input Tax Credits in both CGST and SGST
• Discrepancies relating to Input Tax Credit availed during the financial year

The department raised these concerns following their examination of ESAB India's tax returns for the relevant period.

Company's Response and Impact Assessment

ESAB India has indicated that it will challenge the tax demand through the appropriate legal channels. The company is currently in the process of preferring an appeal with the department against the order.

The company has assessed that despite the Rs. 37,99,846 demand amount, there will be no material impact on its financial, operational, or other business activities. This disclosure was made in compliance with SEBI regulations to keep stakeholders informed of significant regulatory developments.

ESAB India Limited has submitted its quarterly compliance certificate to securities depositories for the quarter ended 31st March 2026. The certificate, filed under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, was submitted on 3rd April 2026 to both major depositories in India.

Regulatory Compliance Certificate

The certificate was addressed to National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), confirming the company's adherence to prescribed dematerialization procedures. Company Secretary G. Balaji digitally signed the document, ensuring its authenticity and legal validity.

Dematerialization Compliance

The certificate confirms that ESAB India has maintained proper procedures for securities dematerialization. The company certified that all securities received for dematerialization were mutilated and cancelled after due verification, with the depository's name being substituted in company records as the registered owner within the mandatory 15-day period.

Additionally, the company confirmed that certificates of dematerialized securities continue to be listed on the same stock exchanges where the originally issued securities were traded, ensuring continuity in trading operations.

Stakeholder Communication

The compliance certificate was also copied to BSE Limited and National Stock Exchange of India Limited, keeping both primary stock exchanges informed of the regulatory filing. The company's Registrar and Transfer Agent, Integrated Registry Management Services Private Limited, provided supporting confirmation for the certificate.

ESAB India operates from multiple locations including its registered office and Ambattur plant in Chennai, along with facilities in Irungattukottai and Kalmeshwar, maintaining its commitment to regulatory compliance across all operations.