Indian Hume Pipe gets ₹1.30 Cr relief in GST appeal for FY21-22

1 min read | Published on 05 Oct 2026, 02:42 PM |Updated on 05 Oct 2026, 02:42 PM

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Suketu GScanX News Team

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Key Highlights

Indian Hume Pipe Company Ltd obtained full relief in a GST appeal for FY21-22
Total demand of ₹1,30,54,437 was overturned by the Commissioner of Appeals, Bhopal
Relief includes ₹34,99,182 in interest and ₹95,55,255 in penalties
Order dated September 30, 2026, reverses the January 14, 2025 original order
No adverse financial impact reported by the company

*this image is generated using AI for illustrative purposes only.

Indian Hume Pipe Company Ltd secured full relief in a Goods and Services Tax (GST) dispute, overturning a total demand of ₹1,30,54,437 for the financial years 2020-21 and 2021-22. The Commissioner of Appeals, Bhopal, passed the order on September 30, 2026, granting all relief sought by the company.

The appeal challenged an earlier Order in Original dated January 14, 2025, issued by the Joint Commissioner of CGST & Central Excise/Service Tax, Bhopal. The original demand included interest imposed under Section 50 of the GST Acts and penalties levied under Sections 73 and 74.

Breakdown of overturned demand

The appellate authority set aside the entire quantum of interest and penalty previously demanded by the tax department. The specific components of the relief are detailed below:

Component	Amount (₹)	Statutory Section
Interest	34,99,182	Section 50
Penalty	95,55,255	Sections 73/74
Total Relief	1,30,54,437	-

The dispute centered on alleged delayed payment of tax and the disallowance of certain Input Tax Credit (ITC). The Joint Commissioner had initially ruled against the company, leading to the imposition of these charges. The subsequent appeal by Indian Hume Pipe resulted in a complete reversal of this decision.

Financial implications

The company stated that the order has no adverse impact on its financials. Since the appellate authority granted the entire relief sought, the previously recorded liability or provision related to this demand is effectively neutralized. This outcome removes a contingent liability that had been pending since the original order in early 2025.

What the numbers show

The relief covers two distinct fiscal years, FY21 and FY22, indicating that the tax department's scrutiny spanned multiple reporting periods. The penalty component (₹95,55,255) constitutes approximately 73% of the total demand, significantly outweighing the interest component (₹34,99,182). This suggests the primary legal battle was fought over the validity of the penalty levy under Sections 73 and 74 rather than just the interest calculation under Section 50.

Historical Stock Returns for Indian Hume Pipe

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.00%	-7.14%	-9.79%	+9.28%	-8.45%	+67.26%

Will Indian Hume Pipe reinstate or reverse any specific financial provisions previously set aside for this GST liability in its upcoming quarterly results?

Does this favorable appellate ruling signal a broader trend of successful tax disputes for infrastructure companies facing similar ITC disallowance claims?

How might the reversal of Sections 73 and 74 penalties influence the company's future compliance strategy regarding Input Tax Credit documentation?

Indian Hume Pipe

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Indian Hume Pipe hit with ₹40.39 lakh income tax penalty for AY25

2 min read | Published on 22 Sept 2026, 03:34 PM |Updated on 22 Sept 2026, 03:34 PM

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Suketu GScanX News Team

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Key Highlights

Income Tax Department levied a penalty of ₹40.39 lakh on Indian Hume Pipe for AY25
Penalty based on alleged under-reporting due to an arithmetical error of ₹58.84 lakh
Company disputes order, noting penalty calculated at 30% vs actual assessed rate of 22%
Differential tax on the error was already paid by March 31, 2026
Company plans to file appeal and rectification petition, expecting demand to subside

*this image is generated using AI for illustrative purposes only.

The Indian Hume Pipe Co. Ltd. has received a penalty of ₹40.39 lakh from the Income Tax Department for Assessment Year 2024-25. The levy stems from an alleged under-reporting of income linked to an arithmetical error in the company's return.

The penalty, amounting to 200% of the tax difference of ₹20.19 lakh, was imposed by the Assessment Unit, NAFAC, Delhi, under Section 270A of the Income Tax Act, 1961. The order dated September 21, 2026, follows an assessment where the department claimed mis-reporting of income totaling ₹58.84 lakh.

Dispute over arithmetical error and tax rates

The company clarified that the discrepancy arose from an arithmetical error of ₹58.84 lakh in its filed return. This error was rectified during assessment proceedings, and the corresponding tax on the additional income was paid by March 31, 2026. Despite this, the department proceeded with the penalty notice issued in March 2026.

Indian Hume Pipe argued in its reply that penalties are not leviable for mere arithmetical errors. Furthermore, the company highlighted a significant procedural flaw: the penalty was calculated using a corporate tax rate of 30%, whereas the company is assessed at a lower rate of 22%. This discrepancy suggests the penalty quantum may be overstated relative to the actual tax liability.

Company challenges the order

The company intends to move a rectification petition to correct the quantification of the penalty. It will also file an appeal before the Commissioner of Income Tax (Appeals), NAFAC, Delhi. Management asserts it has adequate factual and legal grounds to substantiate its position and expects the entire demand to subside.

Particulars	Details
Opposing Party	Assessment Unit, Income Tax Department, NAFAC, Delhi
Penalty Amount	₹40,39,078
Basis of Penalty	200% of tax amount (₹20,19,539)
Alleged Error	Arithmetical error of ₹58,84,439 in return
Tax Rate Applied	30% (Company assessed at 22%)
Status	Appeal planned; rectification petition to be filed

What the numbers show

A divergence exists between the tax rate applied for the penalty calculation and the company's actual assessed rate. The department computed the penalty base using 30%, while Indian Hume Pipe is liable at 22%. If the penalty were recalculated at the correct 22% rate, the base tax amount would be lower, potentially reducing the final penalty significantly. The company’s payment of the differential tax prior to the penalty order further strengthens its argument against the levy for a rectified arithmetical mistake.

Historical Stock Returns for Indian Hume Pipe