Eureka Forbes Limited faces a Rs 16.22 crore tax liability and penalty from CGST Bhopal for alleged excess Input Tax Credit and short outward supplies from FY 2018-19 to 2022-23. Madhya Pradesh High Court granted a stay on coercive action upon 10% deposit following the company's writ petition hearing on January 7, 2026. No material financial impact anticipated as compliance proceeds.
Eureka Forbes Limited received a Rs 16.22 crore tax demand plus penalty from CGST Bhopal for alleged excess Input Tax Credit and short outward tax payments from FY 2018-19 to 2022-23. The company filed a writ petition in Madhya Pradesh High Court at Jabalpur, which on January 7, 2026, granted protection from coercive action upon 10% deposit, received January 8, 2026. No material financial impact expected.
Key Developments
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Challenged order dated October 9, 2025, under Section 74 of SGST Act 2017 issued by Joint Commissioner, CGST & Central Excise Bhopal.
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High Court hearing on January 7, 2026, directed 10% deposit of tax demand to halt recovery proceedings.
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Company processing the deposit; order copy received at 2:10 PM IST on January 8, 2026.
Litigation Details
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Writ petition filed against assessment order demanding Rs 16,22,32,387 tax liability with penalty.
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Opposing party: Joint Commissioner, CGST Bhopal; forum: High Court of Madhya Pradesh, Jabalpur.
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Dispute covers FY 2018-19 to 2022-23 involving ITC excess availment and outward tax shortfalls.
Financial Outlook
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Company foresees no material effect on financials, operations, or activities.
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Quantum of claims not applicable beyond disclosed demand.
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Ongoing compliance with court directive ensures business continuity.
Sources: BSE Limited and NSE India filings by Eureka Forbes Limited; Company disclosure