Deepak Fertilizers and Petrochemicals Corporation Limited (DEEPAKFERT) has disclosed an order imposing a penalty on its wholly-owned subsidiary, Mahadhan AgriTech Limited (MAL). The Assistant Commissioner of Commercial Taxes (Audit) -6.3, DGSTO -6, Bangalore, issued an order with reference number ZD291225240989S dated 31st December 2025. The order raises a total demand of ₹1,84,40,339, comprising tax of ₹1,04,22,839, interest of ₹69,39,040, and a penalty of ₹10,78,460. MAL received this order via email on 31st December 2025 at 13:06. The department disallowed the input tax credit claimed by MAL, stating it was not reflected in GSTR2A. However, MAL maintains that there was no violation or contravention. The company has stated that there is no material impact on the financials, operations, or other activities of DEEPAKFERT. MAL has taken a legal view that the demand is not tenable and intends to challenge the order at an appropriate forum. This information will also be available on the company's website at www.dfpcl.com.
