Elitecon International Limited at its board of directors meeting held on July 4, 2025, announced that as mentioned in the Financial Results for financial year ended March 2025 published on May 27, 2025 the Board reviewed the regulatory developments involving significant tax-related matters. The Board noted that the following developments have a potentially adverse implication on the financial and operational efficiency of the Company: Show Cause Notice from DGGI Nagpur ? INR 3874.3 million Alleged Ineligible ITC There was by an investigation initiated by DGGI Ahmedabad and further executed via search operations conducted by DGGI Nashik on February 10, 2025 at the Company's manufacturing facility in Nashik, Maharashtra.
Following the investigation, the Company received a Show Cause Notice (SCN) dated May 9, 2025 from the Directorate General of GST Intelligence (DGGI), Nagpur Zonal Unit, bearing reference F. No. DGGI/INV/GST/417/2022, alleging wrongfully availing ineligible Input Tax Credit (ITC) amounting to INR 3874.2 million for the period October 2020 to October 2024. The Board was made aware that the matter is currently pending adjudication before the CGST Nashik Commissionerate and the Company is in the process of finalizing a detailed legal response.
Protective SCNs from CGST Agra - Refunds Under Dispute Totaling INR 212.3 million. Additionally, the Company has been issued four Show Cause Notices dated January 13, 2025 by CGST Agra Commissionerate, challenging refund claims of ITC for the following periods: November 2021 - INR 58,604,099. December 2021 - INR 28,414,890.
January 2022 - INR 56,829,780. January 2022 - INR 78,491,768. These notices were issued after the Commissioner (Appeals), Lucknow, set aside the sanctioned refunds pursuant to an appeal filed by CGST Firozabad.
The Board was informed that the Company is intending to challenge the appellate order before the GST Appellate Tribunal, which is currently non-functional. The matter remains open-ended with no confirmed liability as of now.
