Deepak Fertilisers penalised ₹74.89 Crore by State Tax Dept.
Deepak Fertilisers has been levied a total demand of ₹74.89 Crore by the Deputy Commissioner of State Tax, Pune. The demand includes tax, interest, and penalty. The company disputes the levy, citing an incorrect MVAT rate application on natural gas sales to its subsidiary and plans to challenge the order.
While the company claims no material impact and intends to challenge the order, the penalty amount of over ₹74 crore could have a financial impact if not successfully appealed.
The company has been imposed a significant penalty and demand by the tax authorities, which is a negative development.
Deepak Fertilisers and Petrochemicals Corporation Limited has received an order from the Deputy Commissioner of State Tax, Nodal -3, Pune, imposing a total demand of ₹74,89,20,261. This amount comprises tax of ₹31,04,33,269, interest of ₹36,08,78,675, and a penalty of ₹7,76,08,317. The order reference is PUN-NOD-E-307/27040000023V/VAT 2026-27/B-242, dated 31st March, 2026. The company collected this order in person on 11th May 2026.
The company states that there has been no violation or contravention. The department allegedly erred in levying a Maharashtra Value Added Tax (MVAT) rate of 13.5% on the sale of Natural Gas to a subsidiary, instead of the applicable 3% rate for natural gas purchased for captive consumption against proforma A, which was procured and submitted by the subsidiary for this transaction.
Deepak Fertilisers maintains that there is no material impact on its financials, operations, or other activities. The company has obtained a legal opinion that the demand is not tenable and is liable to be set aside in appeal. Consequently, the company intends to challenge the order at an appropriate forum. The information will also be available on the company's website, www.dfpcl.com.
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Deepak Fertilizers and Petrochemicals Corporation Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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