Ponni Sugars (Erode) Ltd has received a demand-cum-show cause notice from the Additional Commissioner of Goods and Services Tax (GST) and Central Excise, Coimbatore, over alleged tax-related violations, the company said in a regulatory disclosure.
The notice, dated April 28, 2026, seeks an explanation on why a demand of about Rs 9.34 crore, along with applicable interest and penalties, should not be raised against the company.
According to the tax authority, the company is alleged to have contravened provisions of the CGST Act, 2017 and TNGST Act, 2017 by wrongly availing input tax credit on its co-generation power plant and certain services, and by not paying GST on some services.
In response, the company said the claims made in the notice are not legally tenable. It added that it will submit an appropriate reply and take necessary legal recourse.
Ponni Sugars further stated that it does not expect the notice to have any material financial or operational impact.
Source from: https://www.chinimandi.com/ponni-sugars-receives-gst-show-cause-notice-over-rs-9-34-crore-demand/
