Rachana Infrastructure Receives Order-in-Appeal Confirming ITC Demand of Rs. 1,19,79,990/-
Rachana Infrastructure Limited received an Order-in-Appeal from the Joint Commissioner (Appeals), CGST, Customs & Central Excise, Indore, confirming an ITC demand of Rs. 1,19,79,990/- along with applicable interest and equivalent penalty under the CGST Act, 2017. The order, bearing No. IND-CGST-JC-APP-1166-2025-26, was received on 12th May, 2026, and upheld the original adjudicating authority's decision on alleged wrongful availment of ITC. The company is evaluating legal remedies, including a further appeal, and does not anticipate any material adverse impact on its operations.
*this image is generated using AI for illustrative purposes only.
Rachana Infrastructure Limited has disclosed the receipt of an Order-in-Appeal from the Joint Commissioner (Appeals), CGST, Customs & Central Excise, Indore, confirming a demand of Input Tax Credit (ITC) amounting to Rs. 1,19,79,990/- along with applicable interest and equivalent penalty. The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was communicated to the National Stock Exchange of India Limited on 13th May, 2026.
Order Details and Nature of Action
The Appellate Authority upheld the Order-in-Original passed by the Adjudicating Authority, confirming the demand related to alleged wrongful availment of Input Tax Credit under the provisions of the CGST Act, 2017. The order was received on 12th May, 2026, bearing Order-in-Appeal No. IND-CGST-JC-APP-1166-2025-26. The key details of the order, as disclosed by the company, are summarised below:
| Parameter: | Details |
|---|---|
| Authority: | Joint Commissioner (Appeals), CGST, Customs & Central Excise, Indore (M.P.) |
| Order-in-Appeal No.: | IND-CGST-JC-APP-1166-2025-26 |
| Date of Receipt: | 12th May, 2026 |
| Nature of Action: | Upheld Order-in-Original confirming ITC demand |
| ITC Demand Amount: | Rs. 1,19,79,990/- |
| Additional Liability: | Applicable interest and equivalent penalty |
| Applicable Legislation: | CGST Act, 2017 |
Financial and Operational Impact
The confirmed demand stands at Rs. 1,19,79,990/- along with applicable interest and equivalent penalty under the CGST Act, 2017. Rachana Infrastructure has stated that it is evaluating the order and considering appropriate legal remedies, including the filing of a further appeal before the appropriate authority or forum. The company has expressed its belief that it has adequate grounds to challenge the said order and does not expect any material adverse impact on its operations or other activities as a result of this order.
Historical Stock Returns for Rachana Infrastructure
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.61% | 0.0% | -3.78% | -13.01% | +4.91% | -76.11% |
If Rachana Infrastructure escalates the appeal to the GST Appellate Tribunal or High Court, how long could the legal proceedings take and what interim financial provisions might the company need to make?
How might the confirmed ITC demand of Rs. 1.19 crore, along with interest and penalty, impact Rachana Infrastructure's working capital and upcoming project bidding capacity?
Could this ITC dispute signal broader scrutiny of input tax credit practices within the infrastructure sector, potentially affecting peer companies with similar GST compliance structures?
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