Isgec Heavy Engineering Limited has informed stock exchanges about a penalty of ₹1,71,116 imposed by the Central Tax authority. The company disclosed this development in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Penalty Details

The penalty order was issued by the Assistant Commissioner (Central Tax), East Division 3, Bangalore East Commissionerate. The company received the official communication regarding this penalty order on December 31, 2025.

Nature of Violation

According to the company's disclosure, the penalty demand relates to taxes that were already paid by the company without any interest and penalty. The Assistant Commissioner of Central Tax, Bengaluru, passed the order raising this penalty demand despite the taxes being previously settled.

Company's Response

Isgec Heavy Engineering has announced its intention to challenge the penalty order. The company stated that it will be filing an appeal against this order under the provisions of the Goods and Services Tax Act. This indicates the company's disagreement with the penalty imposition and its confidence in contesting the decision through proper legal channels.

Financial Impact

The total financial impact on the company amounts to ₹1,71,116. While this represents a relatively modest amount for the engineering company, it reflects ongoing compliance challenges that businesses face under the GST regime.

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing both the BSE and NSE about this development. Additionally, Isgec Heavy Engineering has published this information on its official website at www.Isgec.com , ensuring transparency with all stakeholders. The disclosure was signed by Kalyan Ghosh, Chief Legal Officer & Compliance Officer, demonstrating proper corporate governance procedures.

Isgec Heavy Engineering has received a penalty order from the Central Goods and Services Tax (CGST) authorities, marking a significant regulatory compliance development for the engineering company. The penalty order was issued by the Superintendent CGST, Raipur on December 31, 2025.

Penalty Details and Financial Impact

The regulatory action involves multiple financial components that collectively impact the company's finances:

The penalty order was received on December 31, 2025 at 11:54:00 hours, as documented in the company's regulatory filing.

Nature of Alleged Violation

The Superintendent CGST, Raipur has levied the tax demand alleging inadmissible Input Tax Credit that was wrongly availed and utilized by the company. This action has been taken under Section 73(1) of the CGST Act, which deals with determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized.

The tax demand of ₹12,93,512 forms the major portion of the total financial impact, with the penalty amount representing approximately 10% of the primary tax demand.

Company's Response Strategy

Isgec Heavy Engineering has outlined its approach to address the regulatory order. The company has stated that it shall file an appeal under the Goods and Services Tax Act to contest the penalty and tax demand imposed by the CGST authorities.

This legal recourse allows the company to present its case before higher tax authorities and seek relief from the imposed penalty and tax demand. The appeal process under the GST framework provides companies with an opportunity to challenge adverse orders through proper legal channels.