Tata Steel Limited said tax authorities have filed an appeal seeking restoration of penalties worth ₹368.72 crore that were earlier dropped in a GST adjudication order, even as proceedings on the underlying demand remain stayed by the Jharkhand High Court, according to a stock exchange filing.
“On June 16, 2026, the Assistant Commissioner, Division-I, CGST & Central Excise, Jamshedpur, Jharkhand filed an appeal before the Commissioner (Appeals) of CGST & Central Excise, Ranchi against the above-mentioned Adjudication Order dated December 18, 2026, to the extent that the Adjudicating Authority has dropped the penalty amounting to ₹368,72,21,158/-,” Tata Steel said in its exchange filing.
The appeal, filed on June 16 by the Assistant Commissioner, CGST & Central Excise, Jamshedpur, challenges the December 18, 2025, adjudication order to the extent it waived the penalty.
The original show-cause notice, issued in June 2025, proposed disallowance of input tax credit for FY2018-19 to FY2022-23, with an aggregate GST demand of about ₹1,007.55 crore. Of this, Tata Steel said it had already paid ₹514.19 crore in the normal course, leaving an alleged exposure of ₹493.35 crore.
In December 2025, the adjudicating authority confirmed the tax demand of ₹493.35 crore, imposed a penalty of ₹638.83 crore and applicable interest, while dropping an earlier proposed penalty of ₹368.72 crore. Tata Steel subsequently moved the Jharkhand High Court, which granted a stay on all further proceedings in March 2026.
“This matter is, inter alia, contingent upon the final adjudication of the issue concerning the issuance of show cause notices for multiple periods, which is presently sub judice before the High Court,” Tata Steel said.
Tata Steel added that it has a good case on merit and hence will contest the same before the Appellate Authority within the statutory timelines, noting that the development has no impact on its financial or operational position, arising from the said appeal.
