Tata Steel Limited has filed a writ petition before the High Court of Jharkhand challenging a GST adjudication order issued by the Commissioner of CGST & Central Excise, Jamshedpur that imposes significant financial liabilities on the company.
JHARKHAND: Tata Steel Limited has submitted a writ petition to the High Court of Jharkhand, contesting a GST adjudication order that imposes considerable financial liabilities on the company. The petition, filed on March 11, 2026, aims to annul an order issued by the Commissioner of CGST & Central Excise, Jamshedpur, dated December 18, 2025.
The adjudication order mandates that the company pay substantial amounts across different components:
| Component | Amount (Rupees) |
|---|---|
| GST Tax Demand | 493,35,47,131 |
| Penalty | 638,82,62,185 |
| Interest | Appropriate interest on total tax amount |
This financial obligation arises from a show cause cum demand notice dated June 27, 2025, which proposed the disallowance of Input Tax Credit for the fiscal years 2018-19 through 2022-23. The original GST demand was Rs 1,007,54,83,342, but Tata Steel had already paid Rs 514,19,36,211 in the regular course of business, bringing the disputed amount down to Rs 493,35,47,131.
Background of the Case:
The show cause notice was issued by the Office of the Commissioner (Audit), Central Tax, Ranchi, citing violations of Section 74(1) of the Central Goods and Services Tax Act, 2017, along with the State Goods and Services Act, 2017, and Section 20 of the Integrated Goods and Services Tax Act, 2017. Tata Steel was required to respond to this notice before the Additional/Joint Commissioner of Central GST & Central Excise, Jamshedpur, Jharkhand.
Tata Steel provided detailed responses to the appropriate authority within the deadlines set by the show cause notice. The company had also disclosed this issue to stock exchanges on June 29, 2025, and December 19, 2025.
After reviewing the Commissioner’s order, Tata Steel believes that the adjudication process did not adequately consider the company’s submissions. The company maintains confidence in its legal position, asserting that it has a strong case on merits.
Key aspects of Tata Steel’s stance include:
- The belief that its submissions were not properly acknowledged during adjudication.
- Confidence in the merits of its case.
- The decision to seek legal remedy through the High Court.
- Compliance with disclosure requirements under SEBI regulations.
The most recent disclosure was made via an official communication dated March 12, 2026, referenced as SEC/2070/2025-26, addressed to both BSE Limited and the National Stock Exchange of India Limited. The communication was signed by Parvatheesam Kanchinadham, Company Secretary and Chief Legal Officer.
This disclosure was made in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company noted that it was reviewing its disclosure obligations, which prompted this formal communication to the stock exchanges.
This matter constitutes a significant financial exposure for Tata Steel, with the combined tax demand and penalty exceeding Rs 1,130.00 crore, not including interest calculations. The outcome of the writ petition will determine the company’s liability in this GST case spanning multiple financial years.
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