Elecon Engineering Company Limited , a prominent player in the gearing industry, has encountered a significant legal challenge concerning a disputed CENVAT (Central Value Added Tax) credit case. The company recently received an unfavorable order from the Commissioner (Appeal), which has prompted it to take further legal action.

Details of the Dispute

The controversy centers around the carry-forward of the closing balance of disputed CENVAT credit. According to the LODR (Listing Obligations and Disclosure Requirements) data, the Commissioner (Appeal) passed an order rejecting Elecon Engineering's appeal against a previous order by the GST Commissioner. The original order had ruled that the disputed CENVAT credit could not be utilized by the company.

Financial Implications

The case involves a substantial amount of Rs. 1,020.19 lakhs, relating to the assessment year 2017-18. While the exact financial impact remains uncertain at this stage, the magnitude of the disputed amount underscores the significance of this legal battle for Elecon Engineering.

Company's Response

In response to this adverse ruling, Elecon Engineering has decided to escalate the matter to a higher judicial authority. The company has already filed a writ petition before the Hon'ble High Court of Gujarat, challenging the decision of the Commissioner (Appeal). Additionally, Elecon plans to file a suitable application to tag the recent order with their existing petition.

Ongoing Legal Proceedings

The dispute is now part of Elecon Engineering's ongoing litigations related to indirect tax matters. The company is awaiting the final hearing of their case in the Gujarat High Court. This move demonstrates Elecon's commitment to pursuing all available legal avenues to protect its interests in this CENVAT credit dispute.

Transparency and Compliance

Elecon Engineering has been proactive in disclosing these developments to its stakeholders. The company has duly informed the stock exchanges about this update on pending litigations, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As this legal battle unfolds, stakeholders and industry observers will be keenly watching the outcome, given its potential implications for Elecon Engineering's financial position and the broader implications for CENVAT credit issues in the manufacturing sector.

Elecon Engineering Company Limited , a leading player in the material handling equipment and transmission products sector, has reported a strong order book for its Gear Division. According to a recent concall update, the company's Gear Division had open orders worth Rs 710.00 Crores as of June 30, 2025.

Strong Order Book Highlights

The substantial order book of Rs 710.00 Crores for Elecon Engineering's Gear Division indicates:

• Robust Demand: The significant value of open orders suggests a healthy demand for the company's gear products and solutions.
• Business Stability: A strong order book provides visibility for future revenue streams, potentially contributing to business stability.
• Market Confidence: The sizeable order book may reflect customer confidence in Elecon Engineering's capabilities and product quality.

Gear Division's Significance

Elecon Engineering's Gear Division is known for its comprehensive range of industrial gears and gear boxes. The division caters to various industries, including:

• Power
• Steel
• Cement
• Sugar
• Mining
• Rubber
• Paper

The reported order book of Rs 710.00 Crores underscores the division's important role in Elecon Engineering's overall business portfolio.

Looking Ahead

While the company has not provided specific details about the nature of these orders or their expected execution timeline, the substantial order book value suggests a potentially busy period ahead for Elecon Engineering's Gear Division.

Investors and industry observers will likely keep a close watch on how these orders translate into revenue and profitability for the company in the coming quarters. The execution of these orders and any additional order inflows could be key factors in shaping the company's financial performance.

As always, stakeholders are advised to consider multiple factors and consult financial experts when making investment decisions based on this information.