Lumax Auto Technologies Secures Partial Relief in GST Appeal

Lumax Auto Technologies Limited has received partial relief in a long-standing GST matter, with the tax demand significantly reduced following an Order-in-Appeal issued by the Maharashtra tax authorities.

In a regulatory filing submitted to both BSE Limited and the National Stock Exchange of India Limited, the company disclosed that the demand originally raised at ₹3,52,19,923 (including interest and penalty) has now been reduced to ₹1,03,78,580 (including interest and penalty).

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform stock exchanges about material developments.

Background of the Case

The matter relates to an Adjudication Order dated July 19, 2024, issued under:

• Section 73(9) of the Maharashtra Goods and Services Tax Act, 2017

• Section 20 of the Integrated Goods and Services Tax (IGST) Act

The adjudication order covered the period from April 2019 to March 2020.

The tax department had raised a demand alleging:

• Tax not paid or short paid

• Erroneous refund

• Input tax credit wrongly availed or utilised

Following the adjudication order, Lumax Auto Technologies had filed a first appeal under Section 107(11) of the Maharashtra GST Act, 2017.

Details of the Order-in-Appeal

The company has now received an Order-in-Appeal dated February 18, 2026, issued by the Office of the Joint Commissioner of State Tax, Appeals, Pune Division-2, Maharashtra.

The appellate authority has partly allowed the appeal, resulting in a substantial reduction of the tax demand.

Revised Demand Position

• Original Demand: ₹3,52,19,923

• Revised Demand: ₹1,03,78,580

• Reduction: Approximately ₹2.48 crore

This reduction represents a significant financial relief for the company.

Nature of the Alleged Violations

According to the disclosure, the demand was raised on account of:

• Tax not paid or short paid

• Tax erroneously refunded

• Input Tax Credit (ITC) wrongly availed or utilised

Such matters are common under GST assessments, especially during early implementation years when interpretation of provisions was evolving.

Company’s Next Course of Action

Despite receiving partial relief, the company has stated that, based on advice from its tax advisors, it intends to file a further appeal before the Hon’ble Tribunal within the prescribed timelines.

This indicates that Lumax Auto Technologies is seeking additional relief and believes it has strong grounds to contest the remaining demand of ₹1.03 crore.

Financial Impact on the Company

From a financial perspective, the reduction of demand significantly lowers potential liability.

The revised demand of ₹1.03 crore, though still material, is considerably lower than the original ₹3.52 crore demand.

Such tax disputes typically require companies to:

• Provide for contingent liabilities

• Assess impact on profit and loss

• Evaluate cash flow implications

However, since the company is pursuing further appeal, the final financial impact will depend on the Tribunal’s decision.

Regulatory Compliance and Transparency

The company has complied with Regulation 30 of SEBI Listing Regulations, ensuring timely disclosure of material developments.

Additionally, the information has been made available on the company’s official website, reflecting adherence to transparency norms.

Such disclosures help investors stay informed about legal and tax matters that could impact financial performance.

About Lumax Auto Technologies Limited

Lumax Auto Technologies Limited (Security Code: 532796, Symbol: LUMAXTECH) is part of the Lumax Group and operates in the automotive components sector.

The company manufactures and supplies:

• Automotive lighting systems

• Emission systems

• Plastic components

• Aftermarket parts

It caters to leading automobile manufacturers in India and overseas markets.

As a listed entity, compliance and governance standards are critical to maintaining investor confidence.

Broader Context of GST Litigation

GST implementation in India began in July 2017. The early years saw multiple disputes related to:

• Input tax credit eligibility

• Rate classification

• Transitional credits

• Documentation requirements

Many corporates faced scrutiny for FY2018–FY2020 periods due to transitional complexities.

Appeals and litigation remain common as businesses seek clarity and relief.

Significance for Investors

For shareholders, this development is important because:

1. Financial Liability Reduced: The tax exposure has been significantly lowered.

2. Active Legal Strategy: The company is proactively pursuing legal remedies.

3. Regulatory Compliance: Timely disclosure reflects governance strength.

While tax disputes can create uncertainty, the partial relief indicates a favourable direction in the matter.

Risk and Uncertainty

Despite the reduction, some uncertainty remains due to:

• Pending appeal before Tribunal

• Possible additional legal proceedings

• Final outcome yet to be determined

Investors should monitor future disclosures for updates on the Tribunal proceedings.

Governance Perspective

The fact that the company disclosed:

• Authority details

• Nature of action

• Monetary impact

• Future course of action

shows adherence to strong governance standards under SEBI Listing Regulations.

Transparent reporting of legal matters enhances credibility and trust.

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