Isgec Heavy Engineering Limited has received a penalty order from tax authorities under the Gujarat State GST Act, resulting in a total financial impact of ₹78.88 lakh. The company disclosed this development through a regulatory filing on December 16, pursuant to Regulation 30 of the SEBI Listing Regulations.

Penalty Details and Financial Impact

The State Tax Officer (1), Enforcement, Div-6, Vadodara imposed the penalty under the State GST Act for alleged violations related to Input Tax Credit claims. The company received the order on December 15, at 16:00:00 hours.

Nature of Alleged Violations

The State Tax Officer levied the tax demand alleging that the company claimed ineligible Input Tax Credit under Section 16(2) of the CGST Act. The specific allegations include:

• Claims from cancelled taxpayers
• Claims from non-genuine taxpayers
• Claims from non-existent taxpayers
• Claims from return defaulters

These violations relate to the company's GST compliance and input tax credit mechanisms, which are critical components of the goods and services tax framework.

Company's Response and Next Steps

Isgec Heavy Engineering has indicated that it will challenge the penalty order through the appropriate legal channels. The company stated in its disclosure that it "shall file an appeal under the Goods and Services Tax Act." This suggests the company disputes the allegations and believes it has grounds to contest the penalty.

The regulatory filing was made available on the company's website at www.isgec.com , ensuring transparency with stakeholders regarding this material development.

Regulatory Compliance

The disclosure was made under Regulation 30 read with Para A of Part A of Schedule III of the SEBI Listing Regulations, which requires listed companies to inform stock exchanges about material events that could impact their operations or financial position. The company filed this information with both BSE Limited and the National Stock Exchange of India Limited.

Isgec Heavy Engineering , a prominent player in the engineering and manufacturing sector, has successfully completed the incorporation of its wholly-owned subsidiary in Eswatini, marking a significant milestone in its African market expansion strategy.

Subsidiary Incorporation Completed

The company received confirmation on December 10, 2025, regarding the successful incorporation of Isgec Eswatini (Proprietary) Limited. This development follows the company's earlier announcement in November regarding its plans to establish a presence in the African nation.

Previous Strategic Initiatives

This incorporation is part of a broader strategic expansion plan that the company has been implementing. Earlier, the Board of Directors had approved several key initiatives including the establishment of this Eswatini subsidiary, a capital investment of Rs 87.00 crores for a Skid Modular Shop at the SEZ Dahej Factory, and support for its Canadian subsidiary Eagle Press Equipment through a CAD 2.00 million standby letter of credit.

Recent Financial Performance

The company's recent financial results showed mixed performance with quarterly net profit increasing by 0.67% while half-yearly profit declined by 0.55% compared to the previous year.

Market Expansion Strategy

The successful incorporation of the Eswatini subsidiary represents a concrete step in Isgec Heavy Engineering's international expansion strategy. This move positions the company to tap into the African market opportunities while complementing its existing operations in India and North America through its Canadian subsidiary.

The company has published this update on its official website, maintaining transparency with stakeholders about its expansion progress. This development demonstrates the company's commitment to executing its previously announced strategic plans and establishing a stronger global footprint in the engineering and manufacturing sector.