TVS Srichakra Limited received a penalty of ₹10.71 lakh from the State Tax Officer in Rudrapur, Uttarakhand, following a violation of e-Way Bill regulations. The order was issued on October 5, 2026, concerning the movement of goods without valid documentation at the time of inspection.

The proceedings were initiated after a vehicle transporting goods was detained. The State GST Department found that the e-Way Bill generated by the supplier had been rejected or cancelled by the recipient due to an inadvertent error. Consequently, the consignment was deemed to have moved without a valid e-Way Bill, leading to the imposition of the fine.

Nature of the violation

The core issue lay in the status of the electronic documentation during transit. While an e-Way Bill was initially generated, its subsequent cancellation rendered the accompanying documents non-compliant with applicable GST provisions governing the movement of goods. The Department treated this lapse as a contravention of statutory requirements.

Company response and impact

TVS Srichakra stated that it is currently evaluating appropriate legal remedies, including filing an appeal before the competent appellate authority. The company explicitly noted that it does not expect any material impact on its operations arising from the said order. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency regarding regulatory actions.

TVS Srichakra Ltd has received a show cause notice from the Deputy Commissioner of State Tax, Bhiwandi, Mumbai, proposing a total demand of ₹17.53 crore for the financial year 2022-23.

The notice, dated September 28, 2026, alleges excess availment of Input Tax Credit (ITC) in GSTR-3B compared to GSTR-2B. The proposed demand comprises tax of ₹8.05 crore, interest of ₹7.78 crore, and penalty of ₹1.70 crore.

Breakdown of Proposed Demand

The regulatory filing details the specific components of the financial implication as follows:

Company Response and Legal Status

TVS Srichakra stated that it had already submitted its response and representations to the tax authority. However, the company noted that these submissions appear not to have been considered before issuing the current notice. The matter remains at the notice stage, with no final order passed by the authority as of the disclosure date.

The company is evaluating the contents of the notice and is in the process of filing a detailed response within the prescribed timeline. It believes it has valid grounds to substantiate its position and will pursue appropriate legal remedies. The financial impact, if any, will be subject to adjudication and disposal of the matter by the appropriate authority.

What the Numbers Show

A significant portion of the proposed demand is non-tax related. Interest accounts for ₹7.78 crore, which constitutes approximately 44% of the total demand, while the tax component stands at ₹8.05 crore. This high interest burden relative to the principal tax amount suggests a prolonged dispute or delayed resolution period since the FY23 assessment year.