Deepak fertilisers & petrochemicals Corporation Limited has received a penalty order from the Joint Commissioner of State Tax (JC-Appeals), Pune, involving a total demand of ₹95.61 crores. The company disclosed this development on January 14, 2026, in compliance with SEBI listing regulations.

Tax Penalty Order Details

The First Appeal order, bearing reference number ZD2701260615884, was passed and received by the company on January 13, 2026. The order addresses issues related to input tax credit claims that were disallowed by the tax department.

The Joint Commissioner reduced the overall demand by approximately ₹7.54 crores across all components, with the most significant reduction in the tax component.

Nature of Alleged Violations

The tax department has disallowed input tax credit claimed by the company, citing two primary reasons:

• Non-reflection of credits in GSTR2A
• Claims deemed as ineligible credit

However, Deepak Fertilisers maintains that there is no violation or contravention on its part and disputes the department's position on the input tax credit claims.

Company's Response and Impact Assessment

The company has stated that the penalty order will have no material impact on its financial operations or other activities. Deepak Fertilisers has taken a legal view that the demand is not tenable and is liable to be set aside in appeal.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also made this information available on its website at www.dfpcl.com , ensuring transparency with stakeholders.

Deepak Fertilisers plans to challenge the order at an appropriate forum, indicating the company's confidence in its position regarding the input tax credit claims that led to this penalty order.

Deepak fertilisers & petrochemicals Corporation Limited has achieved a significant victory in its tax dispute proceedings, with the Commissioner of Income Tax (Appeals), Mumbai allowing appeals involving disputed taxable income of ₹215.00 crores. The favorable ruling covers assessment years from 2013-14 to 2018-19, marking a substantial resolution for the chemical and fertilizer manufacturer.

Background of Tax Disputes

The tax appeals originated from assessment and demand orders received by the company for multiple assessment years. The company had initially received orders for assessment years 2013-14, 2014-15, and 2015-16 during the quarter ended June 30, 2021. Subsequently, orders for the remaining years from 2016-17 to 2019-20 were received by the end of October 2021.

Company's Legal Strategy

The Assessing Officer had made certain disallowances during the assessment proceedings. However, the company's management, based on advice from independent tax experts, determined that these disallowances were legally defendable. This assessment proved correct as the appeals process resulted in a favorable outcome for the company.

The company had filed appeals and rectification applications as appropriate for each assessment year, demonstrating a systematic approach to challenging the tax authorities' initial determinations.

Regulatory Compliance and Disclosure

The development was formally communicated to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received notification of the favorable ruling via email from Income Tax Authorities on January 8, 2026, at 2:38 p.m.

Financial Impact and Implications

The successful resolution of appeals covering ₹215.00 crores in disputed taxable income represents a significant positive development for the company. This outcome validates the company's position that the original disallowances were not justified and demonstrates the effectiveness of its legal strategy in tax matters.

The ruling by the Commissioner of Income Tax (Appeals) provides clarity on the company's tax obligations for the specified assessment years and resolves a matter that had been under dispute since 2021. The company has made this information available on its official website at www.dfpcl.com , ensuring transparency with all stakeholders.