Litigation Update
Sapphire Foods India Receives Favourable GST Appellate Order; ₹977.06 Million Tax Demand Dismissed
NSE
sapphire
BSE
543397
Sapphire Foods India Limited has received a favourable order from the Assistant Commissioner (Appeals), dismissing GST show cause notices aggregating ₹977.06 million. The appellate authority concluded that the company had correctly availed eligible input tax credit and had not claimed excessive credits.
PRICE-SENSITIVE TRIGGER
Event: Receipt of favourable GST appellate order dismissing tax demand.
Type: Litigation Update
Impact: Positive
Immediate Effect: The appellate authority has dismissed the GST demand of ₹977.06 million, eliminating a significant contingent tax exposure relating to the disputed assessment period.
Key Metrics:
- GST Demand Dismissed: ₹977.06 million
- Assessment Period: April 2022 – March 2023 and April 2023 – March 2024
- Prior Order (April 2022 – March 2023): ₹2.06 million (below SEBI disclosure threshold)
- Status: Entire disclosed demand dismissed by appellate authority
Highlight:
- The Assistant Commissioner (Appeals) dismissed the entire GST demand of ₹977.06 million after concluding that Sapphire Foods had correctly availed eligible input tax credit without any excess claim.
What Happened ?
Sapphire Foods India Limited informed the stock exchanges that it has received favourable appellate orders against GST show cause notices aggregating ₹977.06 million issued under Section 73 of the Tamil Nadu GST Act, 2017.
The company had earlier disclosed the receipt of these notices in May 2026. Following the appeal, the Assistant Commissioner (Appeals) ruled in favour of the company, holding that Sapphire Foods had not availed excess input tax credit and had correctly claimed eligible credits.
Accordingly, the entire tax demand of ₹977.06 million stands dismissed.
Key Details
GST Appeal Outcome:
- The appellate authority passed favourable orders dated 23 June 2026 and 26 June 2026.
- The dispute related to GST show cause notices issued under Section 73 of the Tamil Nadu GST Act, 2017.
- The notices covered:
- April 2022 to March 2023
- April 2023 to March 2024
- The Assistant Commissioner (Appeals) held that:
- The company had not availed excessive input tax credit.
- Eligible input tax credits were correctly claimed.
- As a result, the GST demand of ₹977.06 million has been fully dismissed.
- An earlier order relating to April 2022–March 2023 involving ₹2.06 million had remained below the SEBI disclosure threshold and therefore was not previously disclosed.
Note:
- The company has confirmed that there are no proceedings involving key managerial personnel, promoters, or persons in control in relation to this matter.
Risk Analysis
Summary:
- The favourable appellate order substantially reduces regulatory uncertainty arising from the GST proceedings. However, future legal actions, if any, remain subject to statutory rights available to the tax authorities.
Key Points:
- Major GST demand currently stands dismissed.
- The appellate authority ruled in favour of the company’s input tax credit claims.
- No adverse findings were reported against the company.
- Any further legal challenge by tax authorities, if initiated, would follow the statutory appellate process.
Worst Case:
- If the tax authorities choose to pursue further appeals before higher judicial forums, the matter could remain under litigation until a final legal resolution.
Risk Level: Low
Company Commentary
- Sapphire Foods has received favourable appellate orders against the GST show cause notices.
- The Assistant Commissioner (Appeals) confirmed that the company correctly availed eligible input tax credits.
- The entire GST demand of ₹977.06 million has been dismissed.
- No litigation involving promoters or key managerial personnel is associated with this matter.
Official Exchange Filing: Sapphire Foods India Limited
