Honda India Power Products appeal allowed against ₹33,205 tax penalty
Honda India Power Products Ltd secured relief from the Joint Commissioner of State Tax, Raipur, which allowed its appeal against a ₹5,40,956 demand for FY 2019-20. The order vacated the alleged excess ITC of ₹3,32,048, interest of ₹1,75,703, and a penalty of ₹33,205. The company confirmed there is no material impact on its financials or operations.
*this image is generated using AI for illustrative purposes only.
Honda India Power Products Ltd announced that its appeal against a tax penalty has been allowed by the Joint Commissioner of State Tax, Raipur. The order, received on June 22, 2026, formally dropped the demand raised by the Assistant Commissioner of State Tax, Jurisdiction-Raipur-3. The development removes a liability of ₹5,40,956 that had been contested by the company.
The dispute originated from an order passed under Section 73 of the CGST Act, 2017, which alleged excess availing of Input Tax Credit (ITC). The original demand included an ITC excess of ₹3,32,048, interest of ₹1,75,703, and a penalty of ₹33,205 for the financial year 2019-20. This matter was reported to the exchanges on November 28, 2024.
Following the appeal, the Joint Commissioner of State Tax (Appeal) in Raipur, Chhattisgarh, ruled in favour of the company. The appellate authority vacated the entire demand, providing relief to the entity regarding the alleged contraventions.
Details of the Order
The disclosure submitted to the exchanges outlined the specifics of the tax demand and the subsequent relief provided by the appellate authority.
| Component | Amount |
|---|---|
| ITC Excess availed | ₹3,32,048 |
| Interest | ₹1,75,703 |
| Penalty | ₹33,205 |
| Total Demand | ₹5,40,956 |
Honda India Power Products stated that there is no material impact on its financials, operations, or other activities as a result of this intimation of tax payable. The company confirmed that the dropping of the demand concludes the matter for the specified period.
Historical Stock Returns for Honda India Power Products
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.97% | +1.91% | +0.65% | -4.64% | -17.57% | +79.73% |
Will this successful appeal set a precedent for the company in handling other pending tax litigations?
Does the resolution of this dispute indicate a shift in the state tax authority's interpretation of Section 73 of the CGST Act?
How might the company allocate the previously provisioned funds now that the liability has been vacated?
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