MOIL Limited Wins GST Appeal as Appellate Authority Quashes Rs 2028.93 Lakh Demand
MOIL Limited has won a significant legal victory as the appellate authority ruled in its favor, setting aside a GST demand of Rs 2028.93 lakhs under reverse charge mechanism. The Commissioner (Appeals), CGST & Central Excise, Bhopal allowed the company's appeal, quashing the entire demand along with penalty of Rs 2028.93 lakhs and interest of approximately Rs 1500-1800 lakhs, eliminating total risk exposure of Rs 55-58 crore. The dispute concerned GST on MPGATSVVA paid to Madhya Pradesh Mining Department, with no liability surviving as of the order date, subject to any further departmental appeal.
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MOIL Limited has secured a major legal victory in its GST dispute, with the appellate authority ruling in favor of the company and setting aside a substantial tax demand. The government-owned manganese ore mining company announced this development through a regulatory filing dated 21.02.2026.
Appellate Authority Rules in MOIL's Favor
The Commissioner (Appeals), CGST & Central Excise, Bhopal has allowed MOIL's appeal through Order-in-Original dated 29.01.2026, which the company received on 21.02.2026. The appellate authority set aside the impugned Order-in-Original dated 13.12.2024, effectively quashing the entire GST demand that had been imposed on the company.
The dispute centered around GST demand under the reverse charge mechanism on MPGATSVVA (Madhya Pradesh Guarantee for Auction of Tendu leaves, Sal Seeds, Vikas Vyavastha) paid to the Mining Department of Madhya Pradesh.
Financial Impact and Risk Elimination
The appellate authority's favorable ruling has eliminated significant financial exposure for MOIL Limited:
| Component: | Amount |
|---|---|
| GST Demand: | Rs 2028.93 lakhs |
| Penalty: | Rs 2028.93 lakhs |
| Interest (Approx.): | Rs 1500-1800 lakhs |
| Total Risk Exposure Eliminated: | Rs 55-58 crore |
The company had initially faced this demand from the Joint Commissioner, CGST & Central Excise, Jabalpur, which included equal penalty along with the principal GST amount.
Legal Proceedings Timeline
The case progression demonstrates MOIL's successful legal strategy:
| Milestone: | Details |
|---|---|
| Original Order Date: | 13.12.2024 |
| Appeal Filed Against: | Joint Commissioner, CGST & Central Excise, Jabalpur |
| Appellate Authority: | Commissioner (Appeals), CGST & Central Excise, Bhopal |
| Favorable Order Date: | 29.01.2026 |
| Order Received: | 21.02.2026 |
Current Status and Future Implications
With the appellate authority's decision, no liability survives as on the date of the order. However, the company has noted that this relief remains subject to any further appeal that the department might file. MOIL had previously informed exchanges about this matter through letter No. CS/NSE-BSE/2024-25/325 dated 16.01.2025.
This development represents a significant positive outcome for MOIL Limited, eliminating substantial financial risk and validating the company's position on the GST matter related to its mining operations in Madhya Pradesh.
Historical Stock Returns for MOIL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.19% | -4.50% | -13.49% | -9.81% | -4.82% | +107.01% |
