DOMS Industries Limited , a prominent player in the stationery industry, has recently received a significant reduction in a tax penalty imposed by the Office of the State Tax Officer, State Tax Department, Enforcement South Kashmir. The company disclosed this development in a filing to the stock exchanges on October 28, 2025.

Penalty Reduction Details

The tax authority has reduced the penalty amount by 50%, from ₹35,51,578 to ₹17,75,790. This reduction comes as a result of an order issued under Section 129 and Section 122 of the CGST Act, 2017. The original allegation against DOMS Industries was for 'transporting taxable goods without cover of specified documents.'

Key Points of the Order

Company's Response

DOMS Industries has stated that there is no material impact on its financial operations or other activities due to this order. However, the company is currently evaluating legal remedies against the order. They plan to file a response within the prescribed time limit.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, DOMS Industries has promptly disclosed this information to the stock exchanges. The company's proactive approach in informing stakeholders about such regulatory developments demonstrates its commitment to transparency and corporate governance.

Conclusion

While the reduction in penalty is a positive development for DOMS Industries, the company's decision to explore legal remedies suggests that they may contest the remaining penalty amount. Investors and stakeholders will likely keep a close eye on further developments in this matter, as it could have implications for the company's financial statements in the coming quarters.

DOMS Industries Limited , a prominent player in the stationery and art materials sector, has successfully appealed against a Goods and Services Tax (GST) demand notice, resulting in the cancellation of a substantial financial obligation.

Appeal Outcome

The Commissioner of CGST & Central Excise (Appeals), Surat, has set aside the original order, effectively dropping the entire GST demand, penalty, and associated interest. This decision marks a significant victory for DOMS Industries in its tax dispute with the authorities.

Details of the Case

The company had faced a GST demand of ₹5.36 crore, along with an equal penalty of ₹5.36 crore, totaling ₹10.72 crore. Additionally, applicable interest was levied for the alleged short payment of GST under the Central Goods and Services Tax (CGST) Act. The dispute arose from an alleged misclassification of goods sold by the company.

Implications for DOMS Industries

This favorable ruling eliminates a potential financial burden of over ₹10 crore for DOMS Industries Limited. The successful appeal not only relieves the company of the immediate financial obligation but also sets a precedent for similar cases in the industry.

Company's Disclosure

In compliance with regulatory requirements, DOMS Industries Limited promptly disclosed this development to the stock exchanges. The company filed the information under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating its commitment to transparent communication with stakeholders.

Timeline of Events

This successful appeal against the GST demand notice represents a significant legal and financial win for DOMS Industries Limited, potentially impacting its financial outlook positively and reinforcing its stance on tax matters.