Zodiac Energy Limited has initiated legal proceedings to challenge a GST demand notice, filing both a Special Civil Application before the Gujarat High Court and an appeal to tax authorities. The company announced these developments under Regulation 30 of SEBI listing requirements on March 13, 2026.

GST Demand Notice Details

The Assistant Commissioner of State Tax, Ahmedabad issued a Show Cause Notice dated June 30, 2025, alleging demands for multiple tax categories for FY 2018-19:

Legal Actions Initiated

Zodiac Energy has pursued a dual-track legal strategy to contest the GST demand. The company filed a Special Civil Application before the Hon'ble High Court of Gujarat on March 03, 2026, seeking appropriate relief including a stay on further proceedings by the tax authority.

Subsequently, on March 13, 2026, the company's management decided to file an appeal before the Deputy Commissioner of State Tax (Ahmedabad). This appeal seeks comprehensive relief including setting aside and quashing the entire demand covering tax, interest, and penalty components.

Previous Successful Challenge

The company's legal strategy draws strength from a recent favorable precedent. In a previous case involving Zodiac Energy Limited, the Hon'ble High Court of Gujarat delivered a significant ruling on July 17, 2025. The court quashed and set aside both the Show Cause Notice dated August 5, 2024, and the Order-in-Original dated February 4, 2025, issued by the respondent authority.

Current Case Strategy

The present case arises on identical facts and legal grounds as the previously successful challenge. This similarity forms the foundation of the company's current appeal strategy, as they are preferring the present appeal on the same grounds that proved successful in the earlier matter.

Regulatory Compliance

The company has provided detailed disclosures as required under SEBI regulations, including reasons for any delay in communication. The Special Civil Application was filed on March 03, 2026, but due to procedural formalities and internal administrative processes, the matter was communicated to Authorized Officers subsequently, resulting in the disclosure delay.

The developments represent ongoing litigation management by Zodiac Energy Limited as the company works to resolve tax-related disputes through established legal channels.

Zodiac Energy Limited has announced the acquisition of a 98% stake in Shamli Solar Projects LLP, making it a subsidiary of the company with effect from March 11, 2026. The acquisition was disclosed under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Acquisition Details

The company acquired its majority position through direct capital contribution of Rs. 19,600 out of the total capital of Rs. 20,000 of the LLP. Shamli Solar Projects LLP (LLPIN: AAU-8180) was incorporated on November 25, 2020, and is engaged in setting up solar power plants, producing electricity through solar energy, and selling solar power.

Financial and Operational Profile

Shamli Solar Projects LLP currently has nil turnover for the last three financial years (2022-23, 2023-24, and 2024-25). The LLP operates exclusively in India and focuses on solar power generation and sales, aligning with Zodiac Energy's core business objectives.

Strategic Impact

The acquisition represents a strategic expansion of Zodiac Energy's renewable energy portfolio. The transaction is conducted on an arm's length basis and involves promoter group interest, as disclosed in the regulatory filing. The acquisition aligns with the company's main line of business and is expected to contribute to further business expansion.

Regulatory Compliance

The acquisition was completed without requiring additional governmental or regulatory approvals. Zodiac Energy filed the necessary disclosures with BSE Limited (Scrip Code: 543416) and National Stock Exchange of India Limited (Symbol: ZODIAC) in compliance with SEBI regulations and circular requirements.