Dharmaj Crop Guard Limited , a prominent player in the agrochemical sector, has recently received a Goods and Services Tax (GST) order imposing a substantial penalty of Rs 2,24,92,044. The order, issued by the Office of Commissioner Central GST & Central Excise, Ahmedabad, alleges wrongful Input Tax Credit (ITC) availment and product misclassification.

Key Points of the GST Order

The GST order outlines two main issues:

1. Wrongful ITC Availment: The order claims that Dharmaj Crop Guard wrongfully availed ITC on the purchase of a rooftop solar system during the audit period. The authorities propose to recover ITC amounting to Rs 15,86,956 (CGST Rs 7,93,478 and SGST Rs 7,93,478), along with interest and penalties.

2. Product Misclassification: The order alleges that the company misclassified certain products under incorrect HSN codes, resulting in short payment of tax. The proposed penalty for this is equivalent to the alleged tax short-paid, amounting to Rs 2,09,05,088.

Financial Implications and Company's Response

Despite the significant penalty amount, Dharmaj Crop Guard Limited has stated that there is no major financial implication on the company. The company disagrees with the findings and conclusions of the order, asserting that all actions were taken in good faith and in accordance with GST law provisions.

Company's Plan of Action

Dharmaj Crop Guard has announced its intention to file an appeal against the order. Key points include:

• The company will file an appeal in Form GST APL-01 before the Commissioner (Appeals), Central GST, Ahmedabad.
• The appeal will be filed within the prescribed period of ninety days from the date of communication of the order.
• The company maintains that the issues involved are purely interpretational, regarding the eligibility of ITC on the solar rooftop system and the classification of products.
• Dharmaj Crop Guard strongly disputes the invocation of Section 74 of the CGST Act, 2017.

Period Under Scrutiny

The GST audit covers the period from April 2018 to March 2024 (FY 2018-19 to FY 2023-24).

Market Impact

While the news of the GST penalty may cause some short-term concern among investors, the company's confident stance and immediate plan to appeal could help mitigate negative market reactions. Investors and stakeholders will likely keep a close watch on the developments of this case and its potential impact on Dharmaj Crop Guard's financial position and market standing.

As the situation unfolds, it will be crucial for the company to maintain transparency with its shareholders and the market at large, providing timely updates on the progress of its appeal and any subsequent developments in this matter.

Dharmaj Crop Guard Limited , a key player in the agrochemical sector, has announced the appointment of Mr. Prakash Patel as President (Technical-Regulatory Affairs), effective November 20, 2025. This strategic move aims to bolster the company's senior management team and enhance its expertise in production and regulatory operations within the agrochemicals industry.

Extensive Industry Experience

Mr. Patel brings a wealth of experience to his new role, with over 34 years in the agrochemicals sector. His career includes significant tenures at prominent companies such as Meghmani and Adama India, where he honed his skills in both production and regulatory aspects of agrochemical operations.

Educational Background and Expertise

Holding a Bachelor's degree in Chemical Engineering, Mr. Patel's educational background complements his extensive industry experience. His expertise spans across various facets of agrochemical operations, making him a valuable addition to Dharmaj Crop Guard's leadership team.

Strategic Appointment

The appointment of Mr. Patel aligns with Dharmaj Crop Guard's strategy to strengthen its position in the agrochemicals market. By bringing in a professional with deep industry knowledge, the company aims to enhance its capabilities in technical and regulatory affairs, which are crucial aspects of the agrochemical business.

Implications for Dharmaj Crop Guard

This appointment may signal Dharmaj Crop Guard's intent to:

• Enhance regulatory compliance and navigate complex industry regulations
• Improve production processes and efficiencies
• Potentially expand product offerings or enter new markets
• Strengthen the company's overall technical expertise

Company's Growth Trajectory

While specific financial implications of this appointment are not disclosed, it's worth noting that Dharmaj Crop Guard has been on a growth path. In their recent earnings call for Q2 & H1 FY2026, the company reported:

• Revenue of ₹715.00 crores for H1 FY2026, marking a 26% year-on-year growth
• Strong performance in various business segments, including formulations and active ingredients

The addition of Mr. Patel to the leadership team may further support the company's growth ambitions and strategic initiatives in the agrochemical sector.

As Dharmaj Crop Guard continues to evolve and strengthen its market position, the appointment of Mr. Prakash Patel as President (Technical-Regulatory Affairs) represents a significant step in enhancing its technical and regulatory capabilities. This move may contribute to the company's future growth and competitiveness in the dynamic agrochemicals industry.