Nelco to explore legal options after tax appeal dismissed

Nelco Limited announced on December 22, 2025, that its appeal against an adjudicating order from the deputy commissioner of CGST & C.Ex was dismissed. The joint commissioner (appeals) confirmed the original demand of 204 lakhs, including penalties, for GST liability based on a reverse charge mechanism. This liability pertains to the period from July 1, 2017, to March 31, 2019.

The company initially disclosed the receipt of the adjudicating order and its subsequent appeal on July 1, 2024. Following the recent dismissal, Nelco stated it would pursue further appeals or explore other legal options to address the confirmed demand. The financial implications for the listed company remain at 204 lakhs.

The communication also noted a penalty of 102 lakhs imposed as part of the overall demand. Despite the setback, Nelco maintains that there is "no impact at this stage" regarding any aberrations or non-compliances identified by the authority.