Mumbai, February 3, 2025 – Indo Rama Synthetics (India) Limited (NSE: INDORAMA, BSE: 500207) has disclosed that it has received an order from the Department of CGST, Surat, under Regulation 30 of the SEBI (LODR) Regulations, 2015. The order, received on February 2, 2025, relates to an alleged violation involving M/s Mohit Industries Limited, a co-licensee in the company's Advance Authorisation scheme.
Key Highlights of the CGST Order
| Particulars | Details |
|---|---|
| Issuing Authority | Department of CGST, Surat |
| Order Reference | Order No. Surat/GST/PRJ/07/2024-25, dated January 24, 2025 |
| Date of Receipt | February 2, 2025, 12:44 IST (via email) |
| Alleged Violation | Refund of IGST amounting to ₹10.22 crore taken by M/s Mohit Industries Ltd. under Indo Rama Synthetics’ Advance Authorisation scheme |
| Financial Impact | ₹10.22 crore, including penalty on Indo Rama Synthetics Ltd. |
| Company Response | Indo Rama Synthetics Ltd. is filing an appeal before the Commissioner (Appeals), Surat |
Financial & Legal Implications
The order alleges that M/s Mohit Industries Ltd. wrongfully claimed an IGST refund of ₹10.22 crore under the Advance Authorisation scheme of Indo Rama Synthetics Ltd. As a result, the tax department has imposed a penalty of ₹10.22 crore on Indo Rama Synthetics Ltd. as well. The company has stated that it will contest the order before the Commissioner (Appeals), Surat.This development could have a material financial impact on Indo Rama Synthetics Ltd., as the penalty amount is substantial. However, since the company is challenging the order, the final liability remains uncertain.
Company Statement
Manish Kumar Rai, Company Secretary and Compliance Officer, confirmed the regulatory filing, stating that Indo Rama Synthetics (India) Limited is taking necessary legal steps to address the matter.Investors and stakeholders are advised to monitor further updates on the case as it progresses through the appeals process.