United Heat Transfer Limited Files GST Appeal Against Rs. 1.58 Crore Penalty Order
United Heat Transfer Limited has filed an appeal against a GST penalty order involving Rs. 1,08,00,000 in GST, Rs. 10,80,000 penalty, and Rs. 39,78,542 interest related to leasehold rights transfer during FY 2023-24. The company made the required pre-deposit of Rs. 10,80,000 and expects a favorable outcome with no material financial impact anticipated.
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United Heat Transfer Limited has filed an appeal with the Appellate Authority of the GST Department of Maharashtra, challenging a penalty order that imposes significant financial obligations on the company. The appeal was filed on 23rd April, 2026, following proper regulatory procedures and disclosure requirements.
Appeal Details and Financial Implications
The company has contested an order dated 5th February, 2026, received via email on 6th February, 2026, from the GST Department of Maharashtra. As required under the MGST Act, 2017 and CGST Act, 2017, United Heat Transfer made a pre-deposit of Rs. 10,80,000 before filing the appeal in Form GST APL-01.
| Financial Component: | Amount (Rs.) |
|---|---|
| GST Imposed: | 1,08,00,000 |
| Penalty under Section 73: | 10,80,000 |
| Interest under Section 50: | 39,78,542 |
| Pre-deposit Made: | 10,80,000 |
Background and Regulatory Timeline
The penalty order stems from a Show Cause Notice dated 25th August, 2025, to which the company had submitted its reply on 8th September, 2025. The GST authorities alleged that United Heat Transfer failed to discharge tax liability related to the transfer or reassignment of leasehold rights of MIDC industrial plots to another entity during Financial Year 2023-24.
Company's Position and Expected Impact
United Heat Transfer has expressed confidence in achieving a favorable outcome at the appellate level. The company's management assessment indicates that they do not reasonably expect this litigation to have any material financial impact on the company's operations or financial position.
| Case Parameter: | Details |
|---|---|
| Authority: | Appellate Authority, GST Department of Maharashtra |
| Appeal Filing Date: | 23rd April, 2026 |
| Original Order Date: | 5th February, 2026 |
| Violation Period: | Financial Year 2023-24 |
| Nature of Dispute: | Transfer of leasehold rights of MIDC industrial plots |
Regulatory Compliance
The disclosure has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024. The company has also committed to making this information available on its official website, ensuring transparency with stakeholders and regulatory authorities.
Historical Stock Returns for United Heat Transfer
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -14.71% | +1.55% | -45.28% | -21.85% | -23.38% |
How might this GST dispute affect United Heat Transfer's future land acquisition or divestment strategies?
What precedent could this appellate decision set for other companies involved in MIDC plot transfers?
Will United Heat Transfer need to adjust its financial provisions if the appeal process extends beyond the current fiscal year?
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