Craftsman Automation Faces GST Tax Demand of ₹962.89 Lakhs After Appeal Rejection
Craftsman Automation Limited received an adverse GST appeal ruling with Commissioner (Appeals), Gurugram upholding ₹962.89 lakhs tax demand and equal penalty amount. The dispute relates to valuation of consideration for services spanning 2017-18 to 2023-24, with total liability reaching ₹1,925.78 lakhs. Despite the substantial amount, the company maintains its GST compliance position and plans to file further appeals while expecting no material impact on operations.
*this image is generated using AI for illustrative purposes only.
Craftsman Automation Limited has received an adverse ruling in its GST appeal case, with tax authorities upholding a significant demand of ₹962.89 lakhs. The Commissioner (Appeals), Gurugram delivered the order on December 30, 2025, which the company received on January 14, 2026.
GST Appeal Decision Details
The appellate authority has upheld both the tax demand and penalty imposed by the Joint Commissioner of CGST, Faridabad. The ruling maintains the original assessment that resulted in substantial financial implications for the company.
| Parameter: | Details |
|---|---|
| Tax Demand: | ₹962.89 lakhs |
| Penalty Amount: | ₹962.89 lakhs |
| Total Liability: | ₹1,925.78 lakhs |
| Order Date: | December 30, 2025 |
| Receipt Date: | January 14, 2026 |
Nature of GST Dispute
The dispute centers on valuation of consideration for certain services and related processes undertaken by the company. The assessment covers an extended period spanning from 2017-18 to 2023-24, indicating a comprehensive review of the company's GST compliance practices across multiple financial years.
The original order was passed by the Joint Commissioner of CGST, Faridabad, against which Craftsman Automation had filed an appeal. However, the appellate authority has now rejected the company's contentions and upheld the lower authority's decision in its entirety.
Regulatory Compliance and Disclosure
In accordance with SEBI LODR Regulations, the company has filed detailed disclosures with stock exchanges. The regulatory filing, submitted pursuant to Regulation 30 read with Para A of Part A of Schedule III, provides comprehensive details about the appellate order and its implications.
| Regulatory Aspect: | Details |
|---|---|
| Authority: | Commissioner (Appeals), Gurugram |
| Violation Period: | 2017-18 to 2023-24 |
| Compliance Status: | Company maintains full GST compliance |
| Filing Reference: | Continuation of January 4, 2025 intimation |
Company's Response and Next Steps
Craftsman Automation has maintained its position regarding GST compliance throughout the proceedings. The company stated it has consistently complied with all applicable GST requirements, including those related to the disputed matter.
The management has indicated its intention to pursue further legal remedies by filing an appeal against the Commissioner (Appeals) order. The company continues to contest the valuation methodology applied by tax authorities while maintaining that its GST practices were compliant.
Financial and Operational Impact
Despite the substantial amount involved, Craftsman Automation's management has assessed that the order will not materially impact the company's operations. The company stated it does not foresee any material impact on financials, operations, or other activities due to the appellate order.
This assessment suggests the company either has adequate provisions for such contingencies or believes it has strong grounds for success in higher appellate forums. The company's confidence in its compliance practices and decision to pursue further appeals indicates management's belief in the merits of its case.
Historical Stock Returns for Craftsman Automation
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.13% | -2.14% | +11.89% | +32.22% | +57.80% | +446.81% |
16
