Schneider Electric Infrastructure Limited Receives Appeal Order on GST Credit Demand
Schneider Electric Infrastructure Limited received an appeal order from CGST Appeals, Noida, dated July 29, 2026. The order upholds demands of ₹9,57,641 for CENVAT credit and ₹2,58,549 for hotel booking services, along with interest. A revised penalty of ₹12,16,190 was imposed. The company is evaluating legal remedies, stating no material financial impact.
While the company claims no material impact, the upheld demand and penalty represent a financial liability. The impact is considered medium as it involves a specific financial demand and potential legal recourse, but not a catastrophic event for the company's operations.
The company received an unfavorable order upholding a significant portion of the demand, interest, and penalty. However, a part of the demand was set aside, and the company stated no material impact on financials, leading to a neutral sentiment.
Schneider Electric Infrastructure Limited has received an appeal order from the Office of the Commissioner, CGST (Appeals), Noida, dated July 29, 2026. This order pertains to the wrongful availment/transition of ineligible CENVAT credit (Education Cess, SHE Cess, and Krishi Kalyan Cess) through TRAN-1 under Section 140 of the CGST Act, 2017, and wrongful availment of transitional credit on hotel booking facilitation services without establishing business nexus.
The Commissioner (Appeals) partly allowed the appeal, setting aside a demand of ₹2,83,584 relating to transit invoices recorded on July 31, 2017. However, the appellate authority upheld the demand of ₹9,57,641 towards transitional credit of Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess, and ₹2,58,549 towards hotel booking facilitation services, along with applicable interest.
The penalty was consequentially revised and imposed at ₹12,16,190 under Sections 122 and 74 of the CGST Act, 2017. The company stated that there is no material impact on its financials, operations, or other routine business activities, with the impact limited to the extent of the liability as per the Appeal Order. Schneider Electric Infrastructure Limited is currently evaluating appropriate legal remedies.
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Schneider Electric Infrastructure Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. 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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