Mumbai, January 28, 2025 – Deepak Fertilisers and Petrochemicals Corporation Limited (NSE: DEEPAKFERT, BSE: 500645) has disclosed that it has received a penalty order of ₹16.82 lakh from the Assistant Commissioner of GST and Central Excise, Cuttack-II Division, Cuttack. The fine under Section 78 of the Finance Act, 1994 relates to an alleged tax violation, although the company has confirmed that all taxes and applicable interest have already been settled.
Key Details of the GST Order
| Particulars | Details |
|---|---|
| Issuing Authority | Assistant Commissioner, GST and Central Excise, Cuttack-II Division |
| Nature of Order | Penalty of ₹16,82,292 |
| Date of Order | January 22, 2025 |
| Date of Receipt | January 27, 2025 |
| Legal Basis | Section 78 of the Finance Act, 1994 |
| Company’s Financial Impact | None – No material impact on financials or operations |
Company’s Response & Next Steps
- There is no immediate financial or operational impact, as the company has already discharged the required tax and interest liabilities.
- Deepak Fertilisers stated that appropriate legal action will be taken based on expert advice to challenge or address the penalty order.
Investor Outlook & Market Impact
- There is no material risk to earnings, as the penalty amount is relatively minor compared to Deepak Fertilisers’ overall revenue and profitability.
- Investors may monitor the company’s legal response to assess whether the penalty is contested or paid without further appeal.
- Strong regulatory compliance practices may bolster investor confidence in Deepak Fertilisers' governance framework.