Nila Infrastructures Limited has achieved a significant legal victory in its tax dispute with the CGST Department, with the Appeals Commissioner allowing the company's appeal and completely setting aside the original departmental order. The favorable ruling relieves the company of substantial financial liabilities that had been imposed earlier.

Appeal Victory Details

The Office of the Commissioner (Appeals) CGST - Jodhpur issued an order dated 27 February 2026, which was received by the company on 13 March 2026. This appellate order has allowed the company's appeal in its entirety and set aside the impugned order of the CGST Department.

Original CGST Department Action

The GST Department had initially taken adverse action against Nila Infrastructures through an order by the Assistant Commissioner CGST – Jodhpur. The department had alleged contraventions under specific provisions of the CGST Act 2017.

The department had contended that the company wrongly availed Input Tax Credit aggregating ₹50,50,133 in TRAN-01, which led to the disallowance and imposition of an equivalent penalty amount.

Financial Impact and Relief

The successful appeal has provided substantial financial relief to Nila Infrastructures. The company is no longer required to make payment of the disallowed ITC amount along with the penalty and associated interest charges.

Key Financial Benefits:

• Relief from disallowed ITC payment of ₹50,50,133
• Waiver of penalty amount of ₹50,50,133
• No liability for interest charges on the above amounts
• Complete closure of the matter with no outstanding dues

The Appeals Commissioner's decision has effectively closed the matter, with all disallowed amounts, interest, and penalties being set aside completely. This outcome represents a total financial relief exceeding ₹1 crore when considering the principal amounts and associated charges.

Regulatory Compliance

Nila Infrastructures has disclosed this development in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the company's earlier intimation dated 01 July 2024, which had informed about the receipt of the original CGST Department order.

The company received the Appeals Commissioner's order on 13 March 2026 at 10:33 AM and has promptly informed the stock exchanges about this favorable outcome. This successful resolution demonstrates the company's commitment to defending its legitimate tax positions through proper legal channels.

Nila Infrastructures Limited has received credit rating assignment and upgrade from Brickwork Ratings, as communicated to the stock exchanges on February 26, 2026. The company informed both BSE and NSE about this development under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations 2015.

Credit Rating Details

Brickwork Ratings has assigned and upgraded credit ratings for Nila Infrastructures' banking facilities across two categories. The rating action encompasses a total debt size of INR 136.42 crore, reflecting the company's enhanced creditworthiness.

Rating Actions and Facility Changes

The rating agency has assigned BWR BBB+ Stable/A2 ratings while simultaneously withdrawing ratings on closed facilities worth INR 8.15 crore upon facility closure. This action indicates the company's active management of its debt portfolio and facility optimization.

The fund-based long-term bank facilities of INR 24.67 crore received a BWR BBB+ Stable rating, indicating good credit quality with adequate safety for timely servicing of financial obligations. The non-fund based bank facilities totaling INR 111.75 crore were rated BWR BBB+ Stable/BWR A2, reflecting strong creditworthiness for both long-term and short-term obligations.

Regulatory Compliance and Communication

Nila Infrastructures received the formal rating letter from Brickwork Ratings on February 26, 2026, at 04:51 p.m. The company promptly communicated this development to both stock exchanges in compliance with regulatory requirements. Company Secretary Dipen Parikh signed the intimation letter, ensuring proper corporate governance protocols were followed.

The credit rating assignment and upgrade represents a positive milestone for Nila Infrastructures Limited, potentially enhancing its access to capital markets and improving borrowing terms for future financial requirements.